The average price tag of a UK home jumped by £4,333 month-on-month in May, according to Rightmove, as market confidence remains "surprisingly strong" despite economic pressures. The typical price of a home coming to market increased by 1.2 per cent to reach £378,304, stronger than the average 1.0 per cent rise seen in May in recent years.
North-South Divide Widens
Despite the monthly increase, average prices have fallen by 0.3 per cent since May 2025, revealing a clear North-South divide. Prices in the more affordable North East (2.7 per cent) and North West (2.6 per cent) of England continue to rise annually, while London (minus 2.4 per cent) and the South East (minus 1.6 per cent) are seeing annual asking price falls.
Buyer Choice at 11-Year High
Colleen Babcock, property expert at Rightmove, said: "It's normal to see asking prices pick up as we move through the spring selling season. What's notable this month is that activity in the market is staying fairly steady, even with ongoing cost-of-living pressures and wider global uncertainty."
The number of homes for sale is at its highest level for this time of year since 2015, giving buyers more choice. However, with 32 per cent of listings seeing a price reduction, new sellers need to price competitively to avoid longer selling times.
Impact of Pricing Strategy
Homes priced realistically from the outset sell faster. Properties that required a price reduction spent an average of 127 days on the market, compared with just 36 days for those without a reduction. Matt Smith, a mortgage expert at Rightmove, noted that small falls in mortgage rates and greater lending flexibility are helping buyers, especially first-time buyers, to make the numbers work.
Rental Market Trends
Separately, property firm Hamptons reported that investor activity has picked up sharply this year. Tenants moving into new homes paid 1.9 per cent more year-on-year, taking the average rent across Britain to £1,396 per month. Renewal rents rose by 3.2 per cent annually to £1,312 per month. Aneisha Beveridge, head of research at Hamptons, said higher yields in the North are offsetting rising costs, while in the South, landlord sales are more likely to go to first-time buyers or owner-occupiers.
