National asking prices rise above the 10-year May average, but annual prices remain lower in London and the South East
The average asking price of newly listed homes rose by 1.2% or £4,333 in May to £378,304, according to Rightmove's latest monthly index.
The increase exceeds the typical 10-year May uplift of 1%, pointing to a firmer-than-expected seasonal trend despite ongoing cost-of-living pressures and global economic uncertainty.
On an annual basis, however, the picture is more mixed. The national average asking price is 0.3% lower than a year ago, a figure that masks significant regional variation.
The North East and North West recorded annual gains of 2.7% and 2.6% respectively, while London fell 2.4% and the South East declined 1.6%. The divergence reflects differing affordability conditions between regions.
| National average asking price | ||||
| Month | Avg. asking price | Monthly change | Annual change | Index |
|---|---|---|---|---|
| May 2026 | £378,304 | +1.2% | -0.3% | 292.5 |
| April 2026 | £373,971 | +0.8% | -0.9% | 289.1 |
| National average asking price by market sector (excluding inner London) | ||||
| Sector | May 2026 | April 2026 | Monthly change | Annual change |
| First time buyers | £228,048 | £227,399 | +0.3% | -0.7% |
| Second-steppers | £350,407 | £347,347 | +0.9% | +0.5% |
| Top of the ladder | £704,957 | £688,958 | +2.3% | +0.1% |
| Source: Rightmove | ||||
Buyer choice has also risen sharply. The number of homes listed for sale is at its highest level for this time of year since 2015, and 32% of existing listings have seen a price reduction. Rightmove's data indicates that properties requiring a price cut spent an average of 127 days on the market, compared with 36 days for those that did not — a difference of approximately three months.
"It's normal to see asking prices pick up as we move through the spring selling season," said Colleen Babcock (pictured right), property expert at Rightmove. "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."
Sales activity holds up across market segments
Agreed sales are running 4% below the same period in 2025 but 2% above 2024 levels. In the first-time buyer segment specifically, agreed sales are down 4% year-on-year against a comparatively strong 2025 market and only 1% below 2024. Typical first-time buyer properties recorded the smallest monthly price rise of any sector at 0.3%, and remain 0.7% lower than a year earlier — a dynamic Rightmove attributes to affordability constraints feeding through into pricing rather than a fall in demand.
"What's encouraging is how resilient activity has remained, even among first-time buyers, despite the ongoing pressures of higher living costs and mortgage rates," Babcock said. "The number of sales agreed in the first-time buyer sector is performing better than expected and is broadly tracking the wider market.
"Prices in the typical first-time-buyer sector are lower than a year ago, helping to support affordability. It's a healthy dynamic that activity is continuing not because buyers are overstretching, but because prices are adjusting to levels that some would-be buyers can realistically afford."
Mortgage rates ease slightly
Rightmove's daily mortgage tracker recorded a fall in the average two-year fixed rate to 5.18% in May, down from 5.42% the previous month. The movement equates to approximately £50 less per month on a typical mortgage.
Lending affordability has also been incrementally eased following last year's review of lending criteria such as loan-to-income limits, while continued earnings growth is partially offsetting the broader impact of elevated rates.
"While mortgage rates remain higher than many buyers would like, the picture on affordability has become a little more supportive this month," said Matt Smith (pictured right), mortgage expert at Rightmove.
"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."
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