Average asking prices for homes coming onto the market increased by 1.2% in May, according to the latest house price index from Rightmove. The rise pushed the average asking price up by £4,333 to reach £378,304, showing that the housing market is continuing to hold firm despite wider economic pressures.
The latest figures suggest that activity across the property market remains more resilient than many expected. Rising household costs, ongoing inflation concerns, and uncertainty surrounding global events have all continued to weigh on consumer confidence, yet buyer and seller activity has remained relatively steady.
However, the latest data also highlights a growing divide between different parts of the country. Property prices in northern regions continue to outperform many southern areas, largely due to affordability differences.
According to Rightmove, average asking prices in the North East rose by 2.7% year-on-year, while the North West recorded a 2.6% increase. In contrast, prices in London fell by 2.4%, with the South East also seeing a decline of 1.6%.
This widening regional gap reflects how affordability is shaping buyer behaviour. Homes in northern regions remain more accessible for buyers, particularly first-time purchasers, while higher property values in southern areas continue to place pressure on affordability.
At the same time, buyer choice is increasing. The number of homes currently available for sale is now at its highest level for this time of year since 2015. As a result, sellers are facing greater competition when bringing properties to market.
Rightmove found that nearly one-third of homes listed for sale have already had at least one price reduction. Properties priced correctly from the outset are continuing to perform far better than those initially listed too high.
Homes that sold without any price reduction typically found buyers within 36 days. By comparison, homes requiring price cuts remained on the market for an average of 127 days before securing a sale.
The findings reinforce the growing importance of realistic pricing strategies, particularly in a market where buyers have far more options available to them.
Despite affordability challenges, overall transaction levels have remained relatively stable. Sales agreed were down by only 4% compared with the same period last year and were still 2% higher than during the equivalent period in 2024.
The first-time buyer market has also shown signs of resilience. While agreed sales among first-time buyers were 4% lower than last year, they were only marginally below 2024 levels.
Interestingly, homes typically purchased by first-time buyers recorded the smallest monthly price increase, rising by just 0.3%. These properties also remain 0.7% cheaper than they were a year ago, helping to support affordability for those entering the market.
Mortgage costs have also eased slightly in recent weeks. Rightmove’s mortgage tracker shows the average two-year fixed mortgage rate has fallen from 5.42% last month to 5.18%, providing a modest improvement in affordability for borrowers.
Rightmove property expert Colleen Babcock said the market’s stability has been notable given the ongoing pressures facing households. She explained that while spring usually brings stronger activity levels, the current market is showing surprising resilience against the backdrop of higher living costs and economic uncertainty.
She also pointed out that although national figures remain positive overall, they hide a clear north-south divide in pricing performance. Babcock stressed that sellers need to remain realistic when setting asking prices, particularly as buyers now have more choice than they have had in years.
According to Babcock, estate agents are playing an increasingly important role in helping sellers set competitive prices from the beginning, which can help properties attract stronger interest and secure faster sales.
Other industry figures believe the market is beginning to slow slightly after a stronger start to the year. Shawbrook’s Louise Apollonio said that while prices continue to rise month-on-month, weakening buyer demand may start to affect momentum.
She noted that around 32% of homes currently listed have already reduced their asking prices, suggesting that some sellers are adjusting expectations in response to economic caution and affordability concerns.
Apollonio added that lower buyer demand could create opportunities for purchasers willing to negotiate, especially while many sellers adopt a cautious “wait-and-see” approach over the coming months.
Meanwhile, Finova’s Hamza Behzad said the market has remained active despite inflation pressures and broader global concerns. He also highlighted new housing stock entering the market, particularly as some landlords look to sell buy-to-let properties ahead of further regulatory changes linked to the Renters’ Rights Act.
According to recent figures from Savills, nearly 700 buy-to-let homes were reportedly placed on the market each day up to March. Increased supply could help ease pricing pressures and create new opportunities for buyers struggling to get onto the property ladder.
While uncertainty remains across the wider economy, the latest Rightmove figures suggest the housing market is continuing to adapt rather than stall. Buyers remain cautious, but activity levels show there is still demand in many parts of the market, particularly where pricing remains realistic and affordability is stronger.
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