The average asking price for a UK home has climbed to a new all-time high of £379,517 in May, according to property website Rightmove. This represents a monthly increase of £2,335, or
0.6%, from April—marking the second consecutive month that asking prices have hit record levels.
May is typically a peak time for the UK housing market, with sellers aiming to showcase their homes during the spring. This month’s rise also makes it the fifth year in a row that May has seen record average asking prices.
However, despite the new high, the scale of the price increase was the smallest for May since 2016. Rightmove notes that while more homes are available for sale than at any time in the last decade, demand from new buyers has been relatively subdued this spring.
Earlier in the year, the market saw a flurry of activity, particularly in England and Northern Ireland, as buyers rushed to complete transactions before the end of temporary stamp duty cuts in early April. These cuts, introduced by Chancellor Rachel Reeves in her October budget, did not apply to Scotland and Wales, which have their own property tax systems.
April saw a dip in new buyer interest, with demand just 4% above April 2024 levels. Still, overall buyer demand so far in 2025 is 3% higher than last year, and there are signs of renewed activity in May.
Rightmove suggests that some buyers may have been holding off in anticipation of interest rate changes. Earlier this month, the Bank of England reduced its base rate by 0.25 percentage points to 4.25%, prompting optimism about the outlook for mortgage lending.
Tom Bill, head of UK residential research at estate agency Knight Frank, commented: “With improving interest rate conditions and more relaxed mortgage lending criteria, demand should strengthen in the second half of the year. We’re forecasting average UK house price growth of 3.5% in 2025.”
Mortgage lenders have begun trimming rates and easing affordability requirements. Rightmove reports that the lowest available two-year fixed mortgage rate now stands at 3.72%, down from 4.75% a year ago.
Colleen Babcock, a property expert at Rightmove, advised sellers to stay competitive: “With the number of homes on the market at a 10-year high, sellers need to be mindful of the competition and set realistic asking prices. Buyers are comparing options closely, and homes priced too high may be overlooked.”
Despite the temporary slowdown in buyer demand last month, property sales agreed in April were still 5% higher than the same period last year, suggesting underlying strength in the market.