The housing market remains active despite affordability pressures and wider economic uncertainty, though regional differences in price growth are becoming increasingly pronounced, the latest Rightmove House Price Index suggests.
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.
Rightmove’s Colleen Babcock 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. The number of sales agreed is holding up well, consistent with trends we’ve seen in 2026 so far. However, this overall positive national monthly snapshot masks a north-south divide in year-on-year seller pricing-power.
“Prices are rising in the north, but all sellers should note that buyer choice is now at its highest level for this time of year since 2015. Getting the asking price right from the outset is therefore increasingly important, as homes priced too ambitiously are taking longer to sell.
“Our research shows that a home that’s been reduced takes on average 91 more days to sell than a home that hasn’t needed to be reduced. That’s where agents have a key role to play, working closely with sellers to set realistic prices from day one to help homes to attract immediate interest and sell more quickly.”
The first-time buyer market has also remained relatively stable, although Rightmove noted it remains heavily dependent on lenders continuing to support higher loan-to-value borrowing. Average asking prices in the first-time buyer sector have fallen by 0.7% over the past year, helping to marginally improve affordability at the lower end of the market.
Mortgage rates have eased slightly in recent weeks. Rightmove’s mortgage tracker shows the average two-year fixed rate has fallen to 5.18%, down from 5.42% last month, offering some additional support to buyer confidence.
Matt Smith, Rightmove’s mortgage commentator, added: “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, and when combined with greater flexibility in lending following last year’s review of affordability rules, many buyers are still able to make the numbers work.
“This helps to explain why activity has continued to hold up, particularly among first‑time buyers. Price sensitivity is clearly feeding through into more restrained pricing at the entry level, but importantly this reflects affordability shaping the market rather than a drop‑off in appetite. Where homes are priced realistically and budgets stack up, many buyers are still pressing ahead with their plans.”
Property industry reacts to latest Rightmove House Price Index
