The average price of a home coming to market in the UK increased by £4,333 month-on-month in May, reaching £378,304, according to Rightmove. This 1.2 per cent rise is stronger than the typical 1.0 per cent increase seen in May over recent years.
North-South divide persists
Despite the monthly uptick, annual prices have fallen by 0.3 per cent since May 2025, revealing a clear North-South divide. Asking prices in the North East (up 2.7 per cent) and North West (up 2.6 per cent) continue to rise annually, while London (down 2.4 per cent) and the South East (down 1.6 per cent) experience falls.
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.”
Buyer choice at 11-year high
The number of homes for sale is at its highest level for this time of year since 2015, giving buyers more choice. However, 32 per cent of existing listings have seen a price reduction, indicating over-optimistic initial pricing leads to longer selling times.
Properties that required a price reduction spent an average of 127 days on the market, compared with just 36 days for those priced correctly from the outset – a gap of around three months.
Mortgage rates and affordability
Matt Smith, mortgage expert at Rightmove, noted: “While mortgage rates remain higher than many buyers would like, the picture on affordability has become a little more supportive this month. Small rate falls can make a meaningful difference to monthly budgets.”
Rental market sees renewed investor activity
Separate data from Hamptons shows that investor activity has picked up sharply this year, driven by higher mortgage rates and the Renters’ Rights Act. Tenants moving into new homes paid 1.9 per cent more than a year earlier, with average rents reaching £1,396 per month – the fastest rate of growth in 11 months.
Renewing tenants faced a 3.2 per cent annual increase, taking the average renewal rent to £1,312 per month.
Aneisha Beveridge, head of research at Hamptons, commented: “Higher yields across much of the North of England are more likely to offset rising mortgage and tax costs. Across much of the South, homes sold by landlords are more likely to be bought by first-time buyers or owner-occupiers trading up.”
