House price slump blamed on World Cup and heatwave
House prices made a surprise drop in June because Brits are too busy watching the World Cup to move home, Rightmove has said.
The average UK house price dropped by 0.6 per cent to £376,191 this month, according to the property portal, marking the biggest June fall in 14 years.
Rightmove said this “unusual” slump in property values and housebuying demand came because early heatwaves kickstarted the summer sales slowdown earlier than usual, and because Brits are “distracted” by the World Cup.
“May’s unusual heatwave kick-started summer earlier than usual this year, while the World Cup may prove to be a distraction for home-movers,” the property experts said.
June’s slump in activity brings house prices 0.5 per cent lower than a year ago, with buyer demand having fallen by 10 per cent in May.
There are five per cent fewer homes coming onto the market now than at the same time last year, though this level is six per cent higher than in 2024.
The rate of agreed sales is down six per cent year on year but remains in line with 2024 and 2023, Rightmove said.
The property firm said that housing market activity is usually lower during the summer months because Brits are distracted by sporting events, holidays and good weather, meaning they will only be tempted by attractive prices.
‘Unusual’ house price drop
Colleen Babcock, a property expert at Rightmove, said: “It’s unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year.
“What’s different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and [an] unusual heatwave”.
The UK has endured a months-long slump in its housing market since the Iran war broke out, as higher mortgage rates and fragile consumer confidence slows demand.
The announcement of a peace deal between the US and Iran could be a boost for housebuying conditions if the agreement holds, but property experts Knight Frank said the Bank of England’s expected interest rate hold this week will keep activity “in check”.
Iran war ‘sapped’ housing market momentum
Tom Bill, head of UK residential research, said: “The Middle East conflict has sapped seasonal momentum from the housing market.
“Prices and transaction numbers are softer than expected for the time of year as higher mortgage rates take their toll on buyers.”
Propertymark, which represents the UK’s estate agents, said that homebuying confidence would be boosted if mortgage rate conditions were to improve.
But Nathan Emerson, the trade body’s chief executive, said “the overall level of transactions shows there remains a solid appetite to move despite ongoing economic pressures and seasonal distractions.”