House Prices Hit a New Record in May 2025
House Prices Hit a New Record in May 2025
As the Spring property market rolls on, the latest data from Rightmove reveals that the average asking price for a home in the UK has reached a new record high in May 2025 — now sitting just shy of £380,000.
But what does this mean for buyers and sellers in today’s housing landscape? At Carpenter Surveyors, we’re keeping a close eye on the trends, and there’s plenty to unpack from this month’s figures.
A New Record, But Slower Growth
Asking prices rose by 0.6% in May, an increase of £2,335, bringing the national average to £379,517. While this is a new high, it's also the smallest May increase since 2016, indicating that price growth may be starting to plateau. This softer rise follows a strong April, where prices jumped 1.4%.
Colleen Babcock, a property expert at Rightmove, puts it into perspective:
“It’s another new price record this month, but having seen a May price record for the last five years, it appears to be driven more by seasonal factors given that new buyer demand has slowed.”
More Homes, More Choice
The number of homes available on the market is at its highest level for this time of year in over a decade, giving prospective buyers a greater choice. That increased supply has helped curb runaway price growth, creating a more balanced market environment.
After a surge in activity in March, spurred by buyers aiming to beat the stamp duty deadline in England and Northern Ireland, April saw a dip in buyer demand — down 4% compared to last year. It’s the first month this year where demand has fallen below 2024’s levels.
Despite that brief slowdown, 2025 overall is still showing 3% more demand than last year, and agreed sales in May are tracking 5% higher than the same period in 2024. Buyers may be spoiled for choice, but they’re still active when the right property comes along at the right price.
Sellers Take Note: Pricing Matters
There’s no doubt about it — sellers need to be more strategic. With 14% more homes coming to market compared to this time last year, competition is stiff. Overpriced properties are being overlooked in favour of those priced competitively.
Colleen Babcock offers this advice:
“In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look.”
We’re seeing a market that increasingly leans in favour of the buyer. For sellers, that means setting realistic expectations and working closely with your estate agent to understand local conditions. A fair and appealing asking price is essential if you want to stand out.
Mortgage Rates: A Bit of Relief
Mortgage interest rates are now lower than they were this time last year. The current best two-year fixed rate is 3.72%, a notable improvement from 4.75% in May 2024. The Bank of England’s second rate cut this year is likely to encourage further reductions by lenders.
With average earnings continuing to outpace house price growth, affordability is slowly improving — something we expect will support buyer activity in the coming months.
Colleen adds:
“While we’re not expecting drastic reductions, any lowering of rates will be a boost to buyer sentiment and affordability. With a high number of sellers and a small dip in buyer demand, it’s worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention.”
In Summary: A Market in Transition
The market in May 2025 is one of balance — more homes available, slightly cooler buyer demand, and improved mortgage conditions. For buyers, it’s a welcome moment of opportunity. For sellers, it’s a reminder to price wisely and prepare your home for a competitive landscape.
As always, if you're thinking about buying or selling in the Midlands, get in touch with the experts at Carpenter Surveyors. With over 35 years of trusted service, we’re here to help you make the right move.