Asking prices for homes in southern England have begun to fall, according to new figures from Rightmove, with a glut of properties on the market creating downward pressure on values. The data suggests that while national prices remain broadly stable, localised trends in the south are reshaping the dynamics of the property market.
Rightmove reported that the number of homes listed for sale in southern regions has risen sharply over recent months. With more choice available, buyers are negotiating more assertively, leading sellers to reduce asking prices in order to secure deals. This marks a shift from the competitive bidding wars seen during the pandemic years, when limited supply fuelled rapid price growth.
The trend is most visible in counties such as Kent, Surrey, and Hampshire, where stock levels have grown significantly. Analysts say that affordability constraints, driven by high mortgage rates, mean buyers are less willing to stretch budgets. Sellers are therefore under pressure to adjust pricing expectations.
Nationally, house prices remain more resilient, with modest annual growth recorded. However, the Rightmove figures underline how local conditions can diverge sharply from the overall picture. While northern regions continue to see steady demand and price stability, the south is experiencing a cooling effect as supply increases faster than demand.
Experts suggest that the surge in listings may be partly seasonal, as sellers typically target the spring and early summer months to market homes. Yet the scale of new supply in southern England has been more pronounced this year, amplifying the downward pull on prices.
For buyers, the shift represents a potential opportunity. More properties on the market mean greater choice, reduced competition, and the chance to negotiate on price. For sellers, however, the environment is more challenging, requiring realistic pricing strategies and flexibility to attract offers.
Mortgage rates remain a critical factor in shaping demand. While they have stabilised compared to the sharp increases of recent years, they remain well above historic lows, limiting affordability for many households. This has reduced the pool of active buyers, particularly in higher-priced southern markets.
Rightmove’s analysts note that the current conditions highlight the importance of regional variation. While national averages suggest modest stability, the reality for buyers and sellers depends heavily on location, local supply, and affordability levels. The south, with its higher baseline prices, is more exposed to affordability pressures, making it more sensitive to shifts in demand.
Industry voices argue that the current adjustment may help restore balance to the housing market over the longer term. For years, southern England has been characterised by high prices and limited stock, leaving many first-time buyers locked out. A period of falling or flat prices could improve accessibility, though affordability remains constrained by borrowing costs.
Estate agents across the south report that homes priced competitively are still selling, while overpriced properties are lingering on the market. This underscores the shift in bargaining power, with buyers increasingly setting the pace of negotiations.
Looking ahead, market watchers expect further downward pressure on asking prices in the south if supply continues to exceed demand. However, they caution that a significant fall is unlikely without broader economic shocks, given the ongoing shortage of housing across the UK as a whole.
For policymakers, the figures serve as another reminder of the need to address structural issues in the housing market, including supply shortages, planning delays, and affordability barriers. Without reforms, experts warn that regional imbalances will persist, even as short-term market forces shift prices up or down.
In conclusion, Rightmove’s latest data shows that a surge of homes for sale in southern England is driving asking prices lower, reshaping the market dynamics in one of the UK’s most expensive regions. For buyers, this presents new opportunities, while sellers face tougher competition and the need for realistic pricing. The trend reflects both seasonal shifts and deeper affordability challenges, setting the stage for a more balanced, if slower, housing market in the months ahead.
