House prices hit record high despite subdued market

Despite a quieter than usual late spring, the average price of properties entering the UK’s property market has climbed to £379,517, marking a 0.6% (£2,335) increase this month, Rightmove says.

This milestone represents the fifth consecutive year of record-breaking May prices, though the growth is the smallest for this period since 2016, reflecting a tempered market.

The property sector is experiencing a shift, with a decade-high volume of homes available, intensifying competition among sellers.

The property platform says this surplus has restrained price surges, as buyers enjoy greater choice.

May is a record month

Rightmove property expert, Colleen Babcock, said: “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.

“The 10-year high choice of homes for sale means that sellers need to be aware of the level of competition they’re facing for the attention of buyers, and the prices that are being advertised in their location.”

She added: “In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look.

“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 is higher

April saw a 4% decline in buyer inquiries compared to the previous year, influenced by a recent stamp duty hike in England and uncertainty surrounding global economic factors.

Despite this, the year-to-date demand remains 3% higher than 2024, with early May data indicating a potential recovery.

However, agreed sales in April rose 5% compared to last year, suggesting that motivated buyers are capitalising on the abundant options to secure deals.

Meanwhile, new listings have surged by 14% compared to 2024, further tilting the market in favour of buyers.

This imbalance has prompted caution, as overpriced homes risk being unsold.

Rightmove’s data reveals that properties requiring price reductions take over two months longer to sell, and 32% more sellers have switched estate agents to boost their chances.

April’s activity lull

Toby Leek, the president of NAEA Propertymark, said: “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 1 April.

“However, prices and the market long term remain resilient and with improved mortgage products now being introduced, buyers are finding extra room in their finances, keeping the cogs of the housing market rotating, and in turn, the wider economy too.”

He adds: “Alongside this, sellers must do their research and market their home with an experienced agent who is less likely to overprice and push for a realistic and timely sale.”