Property prices have reached a new record high of £379,517, according to Rightmove, with average asking prices up 0.6% compared to April.
However, the property website said that the latest increase in asking prices was the smallest it had seen for homes coming on to the market since 2016. The West Midlands has seen the highest month-on-month change, with asking prices up 2.4% to an average of £302,632. However, prices in neighbouring East Midlands dipped by 0.1% over the month, bringing the average price of a property there to £291,918.
Colleen Babcock, property expert at Rightmove 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.”
Buyer demand was boosted in the run up to April’s stamp duty increase as purchasers rushed to beat the deadline, but then dipped to 4% below April last year, although there are signs that May is looking more positive. The number of new properties coming onto the market for sale is now 14% ahead of this time last year, with buyers currently spoilt for choice and sellers having to compete to secure purchasers for their properties. That said, year-to-date buyer demand is still 3% ahead of the same period last year.
“The ten-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,“ said Ms Babcock.
“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.”
The average estate agent currently has 60 properties on its books, according to Rightmove, up from 56 in December last year. It is taking an average of 59 days for sellers to secure a buyer, down from 77 days in December 2024, and the shortest time it’s taken since July 2024.
