What's happened
Home prices in the UK have risen by 1.2% in May, with annual prices showing a North-South split. North and North East lead annual gains, while London and the Southeast see declines. Buyer activity remains strong with record buyer choice and high listings, though price realism remains crucial for quick sales.
What's behind the headline?
Live reporting on a shifting market
- The UK housing market is showing resilience as prices tick up in May, driven by spring activity and a larger pool of homes for sale.
- There is a notable North-South divergence: the North and North East are posting annual gains, while the South and London face price declines.
- Buyer choice is at an 11-year high, with 32% of listings seeing a price reduction, underscoring the importance of realistic pricing to avoid longer selling times.
- Mortgage rates have edged down modestly, improving affordability for some buyers, particularly first-time buyers, though overall costs remain higher than a year ago.
- Investor activity is increasing, influenced by policy developments like the Renters’ Rights Act and broader market rebalancing.
Forecast: With buyer demand holding and listings plentiful, prices will likely stabilize further this summer, but regional disparities will persist.
How we got here
Rightmove reports a 1.2% monthly rise in asking prices to £378,304. The North and North East are seeing annual price increases, while London and the Southeast show declines. Mortgage rates have softened slightly, supporting affordability, and investor activity is rising as Renters’ Rights Act reshapes rental dynamics.
Our analysis
The Independent (Vicky Shaw), Reuters, Hamptons, Rightmove data cited by The Independent and Reuters.
Go deeper
- What does this mean for first-time buyers in your area?
- Are listing prices likely to fall further before summer?
- How will mortgage-rate changes shape the next few months?
More on these topics
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National Association of Realtors - Trade association
The National Association of Realtors, whose member brokers are known as Realtors, is a North American trade association for those who work in the real estate industry.
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Lawrence Yun - Economist
Lawrence Yun is a Chief Economist and Senior Vice President of Research at the National Association of Realtors.
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Rightmove - Real estate company
Rightmove plc is a UK-based company that runs rightmove.co.uk, the UK's largest online real estate portal and property website. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.