The latest figures from Rightmove show that the UK housing market remains relatively steady, although regional affordability differences are continuing to drive a widening north-south divide in house price growth.
According to Rightmove’s newest House Price Index, average asking prices increased by 1.2% in May, pushing the average property price to £378,304. While this rise is slightly stronger than the typical May increase seen over the past decade, prices remain 0.3% lower than they were at the same point last year.
Despite wider economic uncertainty and ongoing pressure on household finances, the market has continued to show resilience through the spring selling season.
Buyer choice reaches highest level since 2015
One of the biggest shifts in the market is the growing number of properties available for sale. Rightmove says buyer choice is now at its highest level for this time of year since 2015.
As a result, sellers are facing greater competition when trying to secure buyers. Around 32% of homes currently listed for sale have already seen price reductions, highlighting the importance of realistic pricing strategies.
Rightmove warns that sellers who overprice their homes may struggle to attract interest, particularly in areas where affordability pressures remain high.
Mortgage rates show slight improvement
There have been some positive signs for buyers, particularly after average two-year fixed mortgage rates edged lower from 5.42% last month to 5.18% this month.
The slight drop in borrowing costs has helped improve affordability and boosted confidence among some buyers entering the market.
Sales agreed across the wider market are currently 4% lower than the same period last year, although Rightmove notes that mortgage rates were significantly cheaper at that time. Compared with 2024, however, agreed sales are up by 2%.
First-time buyers remain active
The first-time buyer market has also shown signs of resilience despite affordability challenges.
The number of agreed sales among first-time buyers is currently 4% below last year’s level but only 1% lower than figures recorded in 2024.
Rightmove believes this stability has partly been supported by lenders offering higher loan-to-value mortgage products, allowing buyers with smaller deposits to continue entering the market.
The property portal also pointed out that prices within the typical first-time buyer sector have fallen slightly over the past year, helping improve affordability for some households.
Northern regions continue to outperform
The most noticeable trend in the latest data remains the growing divide between northern and southern regions of the UK housing market.
More affordable areas in the north continue to record stronger annual house price growth, with prices in the north-east rising by 2.7% and the north-west increasing by 2.6%.
In contrast, higher-priced southern regions continue to see weaker performance. Asking prices in London have fallen by 2.4% year-on-year, while the south-east has recorded a 1.6% decline.
The figures suggest affordability is becoming an increasingly important factor influencing where price growth is strongest.
Market remains stable despite pressures
Colleen Babcock, property expert at Rightmove, said it is normal for asking prices to rise during the spring market, but noted that the resilience of buyer activity has remained encouraging despite cost-of-living pressures and wider economic uncertainty.
She explained that while the national market picture remains relatively positive, regional differences are becoming more noticeable as affordability continues to shape buyer behaviour.
Babcock also said the first-time buyer sector has performed better than many expected, largely because prices are adjusting to levels that some buyers can realistically afford rather than buyers overstretching financially.
Affordability remains central to the market
The latest figures reinforce how affordability continues to dominate the UK housing market.
While activity levels remain relatively healthy, buyers are becoming increasingly price-sensitive, particularly in more expensive parts of the country where higher mortgage costs continue to impact borrowing power.
For sellers, realistic pricing is becoming more important than ever as increased housing supply gives buyers more choice and negotiating power.
With mortgage rates still elevated compared with previous years, regional affordability differences are likely to remain a key factor influencing the direction of house prices throughout the rest of 2026.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property