The average price of newly-listed homes for sale has risen by 1.2% this month to £378,304, exceeding the typical ten-year May increase of 1.0% as market confidence remains strong, the latest Rightmove data shows.
However, despite this broadly resilient monthly snapshot, buyer affordability is driving a clear year-on-year north–south divide in price growth. While the national average shows an annual price fall of 0.3%, this masks major regional discrepancies. The more affordable North East (2.7%) and North West (2.6%) are continuing to grow, while London (-2.4%) and the South East (-1.6%) are seeing price falls.
This uneven price performance is unfolding against a backdrop of an 11-year high in buyer choice. With the number of homes for sale at its highest level for this time of year since 2015 and 32% 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.
Market activity continues to hold up despite the ongoing cost-of-living pressures and recent higher mortgage rates, with sales agreed down by just 4% compared with this time last year and 2% higher than the same period in 2024. This relative stability suggests that many movers are continuing with their plans where affordability allows, even in a period of greater global uncertainty.
Sales in the first-time buyer sector are proving nearly as resilient, down 4% compared with the stronger 2025 market and only 1% lower than 2024.
More modest pricing by new sellers is helping to ease affordability at the entry level, with typical first-time-buyer homes seeing the smallest average monthly price increase (0.3%) and remaining 0.7% lower than at this time last year. This points to affordability constraints feeding through into more restrained pricing, rather than a weakening in buyer interest, helping to sustain activity among those looking to take their first step onto the property ladder.
What’s happening with mortgage rates?
Mortgage affordability has improved slightly this month, with Rightmove’s daily mortgage tracker showing that the average two year fixed rate has fallen to 5.18%, from 5.42% this time last month, reducing the average monthly mortgage payment by around £50. This provides a small but welcome boost to buyer confidence and budgets, particularly as a typical mover is now able to borrow more following last year’s review of loan-to-income limits and other affordability criteria. Continued growth in average earnings is also helping to offset some of the impact of higher mortgage rates over recent months.
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. 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. Getting the asking price right from the outset is therefore increasingly important, as homes priced too ambitiously are taking longer to sell.
“What’s encouraging is how resilient activity has remained, even among first time buyers, despite the ongoing pressures of higher living costs and mortgage rates. The number of sales agreed in the first-time buyer sector is performing better than expected and is broadly tracking the wider market. Prices in the typical first-time-buyer sector are lower than a year ago, helping to support affordability. It’s a healthy dynamic that activity is continuing not because buyers are overstretching, but because prices are adjusting to levels that some would-be buyers can realistically afford.”
Matt Smith, Rightmove's mortgage expert, added: “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. Price sensitivity is clearly feeding through into more restrained pricing at the entry level, but importantly this reflects affordability shaping the market rather than a drop off in appetite. Where homes are priced realistically and budgets stack up, many buyers are still pressing ahead with their plans.”
