Latest HPI shows prices rise 1.2% in May
House prices rose in May as the market proved “surprisingly confident” despite global uncertainty, according to Rightmove’s latest house price index.
The index showed the average house price this month stood at £378,304, which was up 1.2% on April and down 0.3% on May last year.
The month-on-month increase was slightly higher than the 1% average increase for May recorded over the past 10 years.
Rightmove’s report said the data showed that housing market activity was “surprisingly confident overall despite global uncertainty and the resulting cost-of-living pressures.”
The real estate firm’s property expert Colleen Babcock said that while it was “normal to see asking prices pick up as we move through the spring selling season”, it was “notable” 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 in the first-time buyer sector, which is heavily dependent on mortgages, was 4% down in a year and 1% lower than in 2024.
“This indicates that first-time buyers have not yet been disproportionately impacted by recent mortgage rate rises, despite being more reliant on borrowing than other parts of the market,” said Rightmove’s report.
However, the report noted that its resilience was “dependent on lenders continuing to lend at higher loan-to-value ratios”.
The first-time buyer sector also saw a smaller monthly rise in prices, and an annual drop in prices of 0.7%, which Rightmove said was “helping to ease affordability at the entry level”.
Differences in affordability are also driving a north-south divide in price growth, with the more affordable North East (+2.7%) and North West (+2.6%) continuing to grow, while London (-2.4%) and the South East (-1.6%) are seeing price falls.
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