UK house asking prices have reached a new record high for the second consecutive month, with average listings now approaching £380,000, according to the latest data from Rightmove.
Rightmove reports that the average asking price for newly listed homes across England, Scotland, and Wales rose by £2,335 (0.6%) in May, bringing the figure to a record £379,517. This marks the fifth consecutive year that UK house asking prices have hit a May peak, driven by the traditionally busy spring market.
However, this month’s increase is the smallest May rise since 2016, reflecting a cooling of momentum in a market currently saturated with the highest number of listings in a decade. The surge in supply is placing downward pressure on sellers, even as seasonal demand typically picks up.
Market Slows After Stamp Duty Deadline Rush
The spring property market has been more subdued than usual, largely due to waning demand following the end of temporary stamp duty cuts in England and Northern Ireland on 1 April. Buyers rushed to close deals in March to avoid higher costs, resulting in a sharp drop in new buyer activity the following month.
While April saw buyer demand only 4% higher than the same period in 2024, overall demand in 2025 remains 3% above last year. Rightmove notes a potential rebound in May, supported by a recent Bank of England rate cut.
Lower Interest Rates and Looser Lending Expected to Boost Market
Earlier this month, the Bank of England reduced its base rate by 0.25 percentage points to 4.25%, providing a boost for mortgage borrowers. The change, along with improving affordability rules, is expected to drive market activity in the second half of the year.
According to Rightmove’s mortgage tracker, the lowest available two-year fixed mortgage rate now stands at 3.72%, down significantly from 4.75% this time last year. Knight Frank forecasts a 3.5% rise in average UK house prices in 2025, assuming interest rate conditions continue to improve.
High Competition Puts Pressure on Sellers to Price Right
Colleen Babcock, property expert at Rightmove, warned that with the widest selection of homes available in 10 years, sellers need to be strategic with pricing. “The level of competition means that an overpriced home could easily be overlooked by buyers,” she said.
Despite April’s slowdown, the number of sales agreed was 5% higher than in April 2024, showing that competitively priced homes are still moving.
