Average asking prices for newly listed homes rose by 1.2% in May, increasing by £4,333 to £378,304. The monthly rise was slightly above the long-term May average of 1.0%, suggesting seller confidence has remained relatively resilient through the spring market. However, asking prices are still 0.3% lower than a year ago.
Rightmove said affordability constraints are continuing to shape market conditions, with northern regions outperforming parts of southern England. Annual asking prices in the North East increased by 2.7%, while the North West recorded growth of 2.6%. In contrast, prices in London fell by 2.4% year-on-year, while the South East recorded a 1.6% decline.
The property portal also highlighted the growing level of competition among sellers. Buyer choice is currently at its highest level for this stage of the year since 2015, with around 32% of homes on the market having undergone at least one price reduction.
According to Rightmove, sellers who enter the market with unrealistic pricing expectations are increasingly facing longer sales timelines. Homes that required a price reduction spent an average of 127 days on the market, compared with just 36 days for properties priced correctly from the outset.
Despite continued pressure on household finances and uncertainty around the wider economy, transaction levels have remained relatively steady. The number of sales agreed is currently 4% below the same period last year, when mortgage rates were lower, but remains 2% higher than in 2024.
