Average asking prices for newly-listed homes in Britain rose by 1.2% in May, equivalent to £4,333, according to data from Rightmove. The increase brings the average asking price from £373,971 in April to £378,304 in May, exceeding the typical 10-year May increase of 1%.
The figures reveal a widening north-south divide in the housing market, with affordability challenges in southern regions contrasting with price growth in the north. While the national average shows an annual price fall of 0.3%, regional data indicates significant variations across the country.
Regional disparities
The North East has recorded asking price growth of 2.7% over the past year, with the North West following at 2.6%. By contrast, London has experienced a 2.4% decline in asking prices, whilst the South East has fallen 1.6%.
These regional differences emerge as buyer choice reaches its highest level for this time of year since 2015, according to Rightmove’s data. The elevated inventory levels coincide with ongoing affordability pressures affecting both buyers and renters across the property market.
Market dynamics
Colleen Babcock, property expert at Rightmove, stated: “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 has remained consistent with trends observed throughout 2026. However, properties priced above market expectations are taking longer to sell. Rightmove’s research indicates that homes requiring price reductions take an average of 91 additional days to sell compared to properties priced correctly from the outset.
Babcock emphasised the importance of realistic pricing: “Getting the asking price right from the outset is therefore increasingly important, as homes priced too ambitiously are taking longer to sell.”
Benjamin Brain, Sales and Marketing Director at Hannells, confirmed that properties priced realistically continue to achieve sales at or above asking price.
Market outlook
The data suggests that whilst the spring selling season has produced typical seasonal price increases, the market remains characterised by regional divergence and heightened buyer choice. Economic uncertainty and cost-of-living pressures continue to influence buyer behaviour, particularly in higher-priced southern markets where transaction processes face additional challenges.
The combination of elevated inventory levels and selective buyer activity indicates that pricing strategy will remain a critical factor for sellers throughout the remainder of 2026, particularly in regions experiencing price declines.