UK house prices continued to show resilience in May despite ongoing global uncertainty and affordability pressures, with Rightmove reporting a 1.2% monthly rise in average asking prices to £378,304. While annual growth remains relatively modest, the latest figures highlight a market that is steadily adapting to higher borrowing costs through more realistic pricing, improved buyer choice, and continued activity among first-time buyers. Regional performance remains mixed, with northern markets outperforming London and the South East, where affordability pressures continue to weigh on pricing.
- Asking prices in the North East increased by 2.7% annually, while the North West rose by 2.6%
- London asking prices fell by 2.4% year-on-year, with the South East down 1.6%
- Buyer choice reached its highest May level since 2015
- Nearly one-third of homes listed for sale have reduced their original asking price
- Average first-time buyer asking prices fell by 0.7% compared to last year
- Average two-year fixed mortgage rates eased from 5.42% to 5.18% in May
- Halifax reported a 0.1% monthly decline in average UK house prices in April
Original article source: Forbes Advisor UK.
The latest figures mean the UK property market is continuing to transition into a more balanced and sustainable phase rather than experiencing any sharp slowdown. Buyers remain active, but affordability is now playing a far greater role in purchasing decisions, particularly in higher-value regions where pricing has stretched considerably over recent years. Sellers who enter the market with realistic expectations are still achieving results, while overpriced listings are taking longer to move.
One of the more significant changes is the growing divide between northern and southern markets. Regions such as the North East and North West continue to benefit from stronger affordability and value-driven demand, while London and the South East are seeing softer pricing conditions. This emphasizes to investors the value of looking past national averages and concentrating on markets where local fundamentals are still favourable.
The resilience of the first-time buyer market is also significant. Despite mortgage rates remaining elevated compared to previous years, wage growth, increased lender flexibility, and a wider range of higher loan-to-value products are helping maintain accessibility. The fact that activity levels remain relatively stable suggests buyers are adjusting to the current rate environment rather than stepping away from the market entirely.
What the market is experiencing now feels less like weakness and more like a recalibration after a prolonged period of rapid price growth. Greater pricing discipline, improved stock levels, and more measured buyer behaviour are creating a healthier environment for long-term stability. For investors and homeowners alike, that shift towards a more grounded market may ultimately prove far more sustainable over the years ahead.
