Home Real estate UK Property Market Sets New Pr...

UK Property Market Sets New Price Record Again

real estate

Business Honor
19 May, 2025

UK home asking prices hit record high in May 2025 despite easing buyer demand.

The UK property market still goes against the trend as the typical asking price of homes hit a record high in May 2025. The average price at which sellers are placing homes on the market is now £379,517 — up £2,335, or 0.6%, on April's figure, Rightmove reports. This is the second consecutive month of record prices, even as buyer demand eased significantly.

Generally, May is the most active month of the property season with sellers thinking warmer weather and tidy homes draw more attention. For the fifth consecutive year, asking prices peaked in May. Yet the 0.6% monthly growth is the lowest May rise since 2016, indicating restrained expansion in a supply-rich market. Indeed, the number of properties on the market is at a ten-year peak, boosting competition between vendors.

The market saw a surge in activity in the first quarter of 2025 as buyers rushed to close deals before temporary stamp duty cuts ended in early April. Since then, demand has softened. April saw new buyer interest just 4% higher than the same month in 2024 — a deceleration compared to earlier in the year.

However, there is still hope. The Bank of England's recent reduction in the interest rate to 4.25% and relaxing of mortgage lending terms is set to improve affordability and sustain increased demand. Mortgage rates are also on a downward trend, with some two-year fixed mortgage deals now being offered at 3.72%.

Industry watchers such as Knight Frank's Tom Bill anticipate a 3.5% rise in prices for 2025, indicated that the housing market is steadying and could continue to expand steadily for the rest of the year. Even with fluctuating demand, the UK residential sector is proving to be robust and competitive.