Rightmove has revealed where house prices have risen across the UK in May amid “surprisingly strong” market confidence.
The typical price of a home coming to market increased by 1.2 per cent to reach £378,304, which is a £4,333 month-on-month increase.
This was stronger than the average 1.0 per cent month-on-month rise seen in May in recent years, the report added.
Despite this increase, average prices have fallen by 0.3 per cent since May 2025, which reveals a North-South divide.
Prices in the more affordable North East (2.7 per cent) and North West (2.6 per cent) of England are continuing to increase annually, while London (minus 2.4 per cent) and the South East (minus 1.6 per cent) are seeing annual asking price falls.
Colleen Babcock, property expert at Rightmove, said: “It’s normal to see asking prices pick up as we move through the spring selling season.
“What’s notable this month is that activity in the market is staying fairly steady, even with ongoing cost‑of‑living pressures and wider global uncertainty.
“The number of sales agreed is holding up well, consistent with trends we’ve seen in 2026 so far.
“However, this overall positive national monthly snapshot masks a North-South divide in year-on-year seller pricing power.
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“Prices are rising in the North but all sellers should note that buyer choice is now at its highest level for this time of year since 2015.”
The report added there is an 11-year high for buyer choice, with the number of homes for sale at its highest level for this time of year since 2015.
With 32 per cent of listings of existing homes for sale seeing a price reduction, new sellers need to price more competitively, as over-optimistic initial pricing is leading to longer selling times, Rightmove said.
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Homes priced realistically from the outset tend to sell faster, with properties that required a price reduction spending 127 days on the market on average, compared with just 36 days for those without a price reduction – a gap of around three months.
Matt Smith, a mortgage expert at Rightmove, said: “While mortgage rates remain higher than many buyers would like, the picture on affordability has become a little more supportive this month.
“Small rate falls can make a meaningful difference to monthly budgets, and when combined with greater flexibility in lending following last year’s review of affordability rules, many buyers are still able to make the numbers work.
“This helps to explain why activity has continued to hold up, particularly among first‑time buyers.”
Rightmove’s research was released as property firm Hamptons said that investor activity in the housing market has picked up sharply this year as higher mortgage rates and the Renters’ Rights Act prompted a reshuffling of the rental market.
Tenants newly moving into homes paid 1.9 per cent more than a year earlier on average, taking the average rent across Britain to £1,396 per month.
This marked the fifth month in a row in which the pace of rental growth has strengthened, with rents rising at the fastest rate in 11 months, Hamptons said.
Rising costs are also being felt by tenants renewing existing contracts. In April, the average price of a renewal rose by 3.2 per cent annually to reach £1,312 per month.
Aneisha Beveridge, head of research at Hamptons, said: “It’s predominantly in areas where the economics of buy-to-let stack up best that homes sold by landlords are most likely to stay within the rental market.
“Higher yields across much of the North of England are more likely to offset rising mortgage and tax costs.
“Across much of the South, meanwhile, homes sold by landlords are more likely to be bought by a first-time buyer or owner-occupiers trading up.”
