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UK Asking Prices Rise in May as Mortgage Costs Ease, Exposing North–South Divide

Weak employer confidence signals fragile demand.

Overview

  • Rightmove reported a 1.2% monthly rise in May, lifting the typical asking price to £378,304 as two‑year fixed mortgage rates dipped to about 5.18%.
  • Average asking prices stayed 0.3% below a year earlier, and sales agreed were about 4% lower than the same period in 2025.
  • The number of homes for sale hit an 11‑year high, which drove 32% of listings to cut prices and left reduced homes on the market for 127 days versus 36 for those priced right first.
  • A regional split has sharpened, with the North East and North West posting annual gains as London and the South East recorded falls.
  • Hamptons said larger investors are buying rentals from smaller landlords in the North, and rents on new lets and renewals are climbing.