Average UK house price climbs by £2,335 in May
The average price of a UK property coming to market has climbed to £379,517 in May, but the seasonal uplift is more subdued than usual, suggesting a market adjusting to increased supply and cautious buyer sentiment.
The average asking price for properties going on sale this month has increased by 0.6% or £2,335, according to Rightmove (RMV.L). While this represents a new high, it is the weakest May increase since 2016.
'It's another new price record this month, but having seen a May price record for the last five years, it appears to be driven more by seasonal factors given that new buyer demand has slowed,' said Colleen Babcock, a property expert at Rightmove. 'The ten-year high choice of homes for sale means that sellers need to be aware of the level of competition they're facing for the attention of buyers.'
Rightmove's figures show that while demand in March surged as buyers sought to complete transactions ahead of April's stamp duty changes in England, activity slowed the following month. Buyer interest fell 4% in April compared to the same period in 2024 — the first year-on-year decline recorded in 2025.
Despite this, demand for the year to date remains 3% higher than in 2024, and the portal's real-time data indicates an early rebound in May. Agreed sales in April were 5% ahead of the previous year, suggesting that committed buyers are still moving decisively.
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'In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears overpriced compared to the competition may not get a second look,' said Babcock. 'This month's price increase being the lowest in May for nine years is a sign of a market that favours buyers and is more subdued than usual.'
Affordability may be improving. Average earnings have risen more than 5% in the past year, outpacing house price growth of just 1.2%. Simultaneously, mortgage rates are easing. Rightmove's weekly mortgage tracker reports the lowest available two-year fixed rate now stands at 3.72%, down from 4.75% a year ago.
A second Bank of England interest rate cut announced earlier this month, should bring lending rates down further.
'Mortgage interest rates are lower than they were at this time last year, and the recent Bank Rate cut also gives us some optimism for further mortgage rate drops that will enable more to buy,' said Babcock. 'While we're not expecting drastic reductions, any lowering of rates will be a boost to buyer sentiment and affordability.'
But while lower mortgage costs are helping underpin demand, the supply side of the market has surged. The number of properties coming to market is up 14% year-on-year, leading to a decade-high level of available stock. This has created a more competitive environment for sellers, with pricing strategy proving critical.
Rightmove's data indicates that homes requiring a price reduction take, on average, more than two months longer to sell. The portal also reported a 32% increase in the number of sellers switching estate agents, often after failing to secure a buyer at an initially optimistic valuation.
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'With a high number of sellers and a small dip in buyer demand, it's worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention,' Babcock added. 'Working with your estate agent to understand your local market and coming to market with a tempting price will give you the best chance of standing out.'
Polly Ogden Duffy, managing director at estate agency John D Wood & Co, echoed the need for realism. 'Nationally there is an increase in property supply unmatched by an increase in the number of buyers,' she said. 'In London, some discretionary sellers and buyers are pausing as the impact of political and economic headwinds takes time to settle. Pricing strategy is critical right now.
'With an increased supply of homes for sale buyers can be more selective, and overpricing — unless your property is truly exceptional — is a fast track to stagnation.
"That said, there is a compelling opportunity to buy and either upsize or get onto the property ladder. The breadth of choice, softer competition, an interest rate drop, and Easter firmly behind us, may offer a clearer runway to secure a home this summer.'
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