UK housing prices suffer the worst June in 14 years as heatwave and Iran conflict jointly weaken demand

(1) On Monday, UK real estate website Rightmove announced that the asking prices for newly listed houses and apartments in June recorded the largest monthly decline in 14 years, dropping by 0.6% month-on-month, compared to a 1.2% month-on-month increase in May. (2) Year-on-year, the asking prices in June dropped by 0.5% compared to the same period last year, continuing the downward trend from May's 0.3% year-on-year decrease. Buyer demand fell by 10% in May when the UK recorded its hottest temperatures in history. (3) According to Rightmove property experts, such a significant price drop in June is highly unusual, as prices tend to rise moderately at this time of year. The abnormality this time is attributed to economic uncertainty, the overlap of bank holidays and a heatwave, as well as a higher number of properties listed on the market. (4) The number of new properties listed for sale fell by 5% year-on-year, but remains 6% higher than the same period in 2024. The number of agreed sales is 6% lower than last year, and is in line with 2024's transaction volume. (5) As of June 8, the average interest rate on two-year fixed mortgages fell to 5.07%, down from 5.18% a month earlier.