UK house prices rise 1.2% in May but Rightmove warns against overpricing

According to the latest House Price Index from Rightmove, housing market confidence remains robust despite ongoing global uncertainty and the rising cost of living. The average price of a property coming to market increased by 1.2% in May, up by £4,333. This brings the typical asking price to £378,304, which exceeds the average 1.0% increase usually seen at this time of year over the last decade.

When looking at the national average asking price compared to this time last year, house prices have fallen by 0.3%; however, the number of sales agreed between buyers and sellers is holding steady. Sales are just 4% lower than at the same point last year, and are 2% higher than in 2024.

Colleen Babcock, property expert at Rightmove 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".

The North-South divide in property prices

While the national picture shows relative stability, there is a clear regional divide driven by buyer affordability. The more affordable northern regions are seeing year-on-year price growth; for example, the North East has seen an annual increase of 2.7%, with average prices sitting at £200,789. Similarly, the North West has experienced a 2.6% rise, bringing average prices in the region to £276,970.

Conversely, more expensive southern areas are experiencing price falls. Average asking prices in London, which currently stand at £685,347, have fallen by 2.4% over the past year. The South East has also seen a 1.6% decrease, with typical prices at £489,561. This regional divide shows that affordability is heavily influencing property prices. With buyer choice at an 11-year high, house hunters are focusing their searches on areas that fit their budget.

What does this mean for buyers?

First-time buyers

There is encouraging news if you are hoping to buy your first home. The average asking price for a typical first-time buyer property has dropped by 0.7% over the past year to £228,048. This slight drop in asking prices is helping to make getting onto the property ladder a little more affordable and the number of first-time buyers agreeing a sale remains strong, sitting just 4% below the levels seen in a busier market last year.

Home movers looking for their next step

If you are already on the property ladder and looking to move, there is some positive news regarding borrowing costs. Rightmove reports that the average two-year fixed mortgage rate has fallen to 5.18%, down from 5.42% last month, reducing the average monthly mortgage payment by around £50. Additionally, with the number of homes available for sale at an 11-year high, those looking to move have plenty of choice and can afford to be selective when finding their ideal next property.

What does this mean for sellers?

While buyer activity is holding up, sellers are facing a highly competitive market. Buyer choice is currently at its highest level for this time of year since 2015. With more homes to choose from, buyers can afford to be selective. Data shows that 32% of existing properties on the market have already seen a price reduction. Setting a realistic asking price from the start is becoming crucial for a successful sale.

According to Rightmove, properties that are priced realistically from day one sell much faster.

• Homes that do not require a price reduction spend an average of 36 days on the market.
• Properties that need to be reduced take an average of 127 days to sell.
• This represents a gap of around 3 months, meaning an overly optimistic initial price can significantly delay a move.

"The number of homes for sale is at its highest level for this time of year since 2015, and almost a third of listings of existing homes for sale are seeing prices reduced. In light of this, new sellers need to price carefully at the beginning of the process to avoid longer selling times. Homes that didn’t need a price reduction sold in just 36 days, compared with 127 days for those that needed a reduction" - Rightmove.

How to source the best deal when buying a house

If you are looking to buy a new home, you should speak with a mortgage broker - ideally one who has access to the whole mortgage market. A mortgage broker will take the time to understand your financial situation and find the best deal for your circumstances. Using a broker can be highly beneficial because they often have access to exclusive, 'intermediary-only' mortgages that you cannot apply for directly.

If you are looking for a mortgage broker, there are a few simple ways to find one:

• Find a local broker - You can search for a professional in your area using an online directory like Vouchedfor*. The site lets you read customer reviews and filter brokers by their areas of expertise.
• Use an online broker - If you prefer to arrange your mortgage digitally, you could consider an online service such as Habito*. Its independent advisers offer free guidance and can help you secure a mortgage without a face-to-face appointment.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor