Rightmove’s House Price Index (HPI) showed that average asking prices hit a new record in May 2025 at £379,517, up 0.6% in the month and 1.2% year-on-year (YoY).
This month’s seasonal rise was the smallest for May since 2016, as a high number of homes for sale held back price growth.
New seller activity was strong, with 14% more homes coming to market compared to last year.
However, new buyer demand dipped in April after Stamp Duty increased, with demand 4% lower than April 2024.
Despite that, sales agreed in the past month were 5% up on last year, showing buyers are still active when the price is right.
Additionally, data showed that mortgage rates fell, with the lowest 2-year fixed now at 3.72%, down from 4.75% a year ago.
Colleen Babcock, property expert at Rightmove, said: “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.”
Babcock added: “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.”
She said: “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.”
Toby Leek, president of NAEA Propertymark, said: “It’s no surprise that April saw a lull in market activity as many of those who wanted to move home, did so before Stamp Duty increased from 1 April.
“However, prices and the market long term remain resilient and with improved mortgage products now being introduced, buyers are finding extra room in their finances, keeping the cogs of the housing market rotating, and in turn, the wider economy too.
“Alongside this, sellers must do their research and market their home with an experienced agent who is less likely to overprice and push for a realistic and timely sale.”
