Rightmove's latest data reveals rising seller competition and growing buyer caution
The average asking price for UK homes listed for sale has edged up by 0.6% or an equivalent of £2,335 in May, reaching a record £379,517, according to property listing platform Rightmove.
This marks the fifth consecutive May to set a new peak, though this month’s rise is the smallest for the month since 2016 — indicating a more subdued late spring market.
Rightmove said the volume of homes for sale is at a 10-year high, creating greater competition among sellers and putting a lid on price growth.
Its latest House Price Index revealed a slowdown in new buyer enquiries in April, following a busy start to the year and the increase in stamp duty in England. However, early May figures suggest a potential rebound in activity. Rightmove pointed to mortgage rates — currently trending downward — as a key factor in shaping buyer sentiment for the remainder of the year.
“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,” said Colleen Babcock (pictured centre), property expert at Rightmove. “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.”
Buyer demand in April dropped by 4% year-on-year, marking the first monthly decline of 2025. The dip was attributed to policy changes, global uncertainty, and potential buyers awaiting the Bank of England’s rate decision. Despite this, overall buyer demand year-to-date is still 3% above 2024 levels, with sales agreed in April up 5% year-on-year.
“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 April 1,” noted Toby Leek (pictured left), president of NAEA Propertymark. “Sellers must do their research and market their home with an experienced agent who is less likely to overprice.”
Indeed, market conditions appear to be shifting in favour of buyers. Wages have risen by more than 5% over the past year, outpacing house price growth, which stands at 1.2% annually. Mortgage affordability has also improved, with the lowest available two-year fixed rate now at 3.72%, down from 4.75% a year ago. The recent bank rate cut, the second this year, may prompt further lender rate reductions.
“The recent base rate reduction seems to have made little or no difference to the approximately four out of five of our sellers who are also buyers,” commented Jeremy Leaf (pictured right), north London estate agent and a former RICS residential chairman. “Most are concentrating on the difference between sale and purchase price rather than the headline figure achieved, particularly while activity remains relatively subdued and buyers are in charge.
“However, this latest Rightmove survey shows that some sellers are still not getting it as a significant proportion of asking prices remain stubbornly high. Offers received now may be the best available for some time bearing in mind the significant choice available.”
The number of newly listed homes is up 14% compared to the same period last year, further boosting buyer choice and putting pressure on sellers to price competitively.
Rightmove warned that pricing a home too high at launch can backfire. Properties that require a price cut typically take over two months longer to sell. The company also reported a 32% rise in the number of sellers switching estate agents — an indicator of growing frustration in the market.
“Despite April’s dip in new buyer demand, there are early signs of a bounce-back in May,” Babcock added. “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.”
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