UK house prices hit fresh high in May - Rightmove

UK house prices hit a fresh high in May, industry data showed on Monday, as market conditions steadied.

According to Rightmove’s latest house price index, average asking prices rose by 1.8% in May, the biggest so far this year and notably higher than May 2022, when they increased by 1%. It was also a notable improvement on April’s 0.2% increase.

As a result, the average asking price of a property coming to market now stands at £372,894.

Year-on-year, house prices were 1.5% higher.

Sellers were increasingly confident about asking prices, Rightmove noted, as the market continued to recover from the impact of last autumn’s disastrous mini budget. Buyer demand was also 3% higher than in May 2019, prior to the pandemic, while agreed sales were just 3% lower.

Tim Bannister, director of property science at Rightmove, said: "This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season.

"One reason for this increased confidence may that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely: more likely the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years.

"Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence."