British home asking prices posted a stronger-than-expected rise in May, signaling resilience in the housing market despite mounting geopolitical uncertainty linked to the Iran conflict and
ongoing cost-of-living pressures.
According to property portal Rightmove asking prices climbed 1.2% month-on-month in May, outperforming the typical seasonal increase of 1.0%. The gain also exceeded April’s 0.8% rise.
Market activity remained relatively stable even as economic concerns and international tensions weighed on consumer confidence, the company said.
“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,” said Colleen Babcock, property expert at Rightmove.
The report also pointed to improving borrowing conditions for buyers. The average two-year fixed mortgage rate fell to 5.18% on May 11, down from 5.42% a month earlier, offering some relief after months of elevated financing costs.
Despite the monthly increase, asking prices were still 0.3% lower than a year earlier, highlighting the broader cooling trend in the housing market.
Affordability pressures also showed signs of easing, particularly for first-time buyers in London and southeast England, where annual price declines have made entering the market slightly more attainable.
Meanwhile, housing supply remained elevated, with the number of homes listed for sale holding at its highest level in 11 years.
Sales activity, however, continued to lag behind last year’s pace. The number of agreed sales was 4% lower than a year earlier, although it stood 2% above the same period in 2024, suggesting a gradual recovery in buyer demand.
