Prices reach new record despite more subdued late Spring market
- New seller asking prices rise by 0.6% (+£2,335) this month to a new record of £379,517. However, this month’s seasonal price increase is the lowest at this time of year since 2016, as the decade-high number of homes for sale limits price growth
- The traditionally strong late Spring market is more subdued following a busy first quarter of the year. Along with the smaller-than-usual price increase, there has been a dip in new buyer demand following April’s stamp duty increase:
- After a busier than usual March, new buyer demand slowed in April to 4% below the same month in 2024. However, demand in the year to date is still 3% ahead of last year, and there are early signs of a bounce-back in May
- Despite April’s lull in new buyer demand the number of sales being agreed in the last month is 5% higher than at this time last year, indicating that spoiled-for-choice buyers are still being tempted by the right property at the right price
- The number of new properties coming onto the market for sale is now 14% ahead of this time last year
- As new seller activity outpaces new buyer demand, some caution on price expectations is needed to achieve a sale
- The latest Bank Rate cut could provide a boost to buyer affordability and activity later in the year. Rightmove’s weekly mortgage tracker shows that the lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% last year
Smaller-than-usual monthly price increase of 0.6% this May
Prices only 1.2% ahead of this time last year due to decade-high supply of homes
The number of sales being agreed is now 5% ahead of this time last year
National average asking price
May 2025
£379,517
Apr 2025
£377,182
MoM change
+0.6%
National average asking price by market sector (excluding inner London)
First time buyers
£229,648
MoM change
+0.5%
Second-steppers
£348,696
MoM change
+0.6%
Top of the ladder
£704,290
MoM change
+1.6%
“It’s another new price record this month, but having seen a May price record for the last five years, it appears to be driven more by seasonal factors given that new buyer demand has slowed. The ten-year high choice of homes for sale means that sellers need to be aware of the level of competition they’re facing for the attention of buyers, and the prices that are being advertised in their location. In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look. This month’s price increase being the lowest in May for nine years is a sign of a market that favours buyers and is more subdued than usual.”
“Despite April’s dip in new buyer demand, there are early signs of a bounce-back in May. Mortgage interest rates are lower than they were at this time last year, and the recent Bank Rate cut also gives us some optimism for further mortgage rate drops that will enable more to buy. While we’re not expecting drastic reductions, any lowering of rates will be a boost to buyer sentiment and affordability. With a high number of sellers and a small dip in buyer demand, it’s worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention. Working with your estate agent to understand your local market and coming to market with a tempting price will give you the best chance of standing out.”
Colleen Babcock, property expert at Rightmove