The higher-priced South West, South East and London areas have seen the largest price drops this month (June).
Rightmove, which conducted the research, said buyers in these regions are disproportionately affected by the higher stamp duty costs which came into force in April, and some sellers may be adjusting their prices downwards to account for this.
The increase of the stamp duty surcharge on investment homes, from 3% to 5%, as well as higher council tax on second homes in some coastal hotspots like Cornwall and Devon, are also contributing to the higher number of properties now up for sale.
Colleen Babcock, property expert at Rightmove, said: “It’s an encouraging market for those looking to buy, with a very good choice of homes for sale, which also means they have good negotiating power. Some buyers with a home to sell in the current high-supply market may achieve a lower price on their own sale, but could look to offset that by negotiating a comparable discount on their purchase.
“The fact that sales are being agreed not only at a good level, but at the strongest level since March 2022, is a really positive sign that many are getting their sales tactics right. Rightmove’s analysis shows that homes which are marketed as effectively as possible and priced right at the start of marketing will get the all-important early interest that vastly increases the likelihood of finding a buyer.”
Prices have risen the most this month in the more affordable North West, Wales, and Yorkshire & The Humber.
These regions are less affected by stamp duty increases, and in the case of Wales, not at all affected.
The average price of property coming to the market for sale dropped by 0.3% (-£1,277) in June to £378,240.
Toby Leek, president of NAEA (National Association of Estate Agents) Propertymark, said: “This modest dip is welcome but is more than likely due as a result of the backlash in the increase in Stamp Duty across England and Northern Ireland.
“A considerable number of first-time buyers will see this dip in house prices balanced out by the tax increase.
“Moving forward, many homebuyers will need additional support in order to enter onto the property ladder considering first time buyers need around a £60,000 deposit to buy a home.”
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