UK Property Market Remains Resilient as Buyers Become More Price-Conscious
Despite higher mortgage rates, rising living costs and all the wider economic uncertainty hanging around, the UK housing market is still ticking along surprisingly well.
The latest figures from the Rightmove show that average asking prices rose by 1.2% in May, adding £4,333 and pushing the average property price up to £378,304. That’s slightly stronger than the usual seasonal rise we tend to see at this time of year, suggesting sellers are still feeling fairly confident heading into summer.
But underneath the headline numbers, the market is becoming much more price-sensitive — and much more regional too.
The North Is Holding Up Better Than the South
One of the biggest trends right now is the growing divide between the north and south of England.
Areas like the North East and North West are still seeing decent price growth, with asking prices up 2.7% and 2.6% respectively over the past year. Meanwhile, southern regions are struggling to keep pace. London prices are down 2.4% year-on-year, while the South East has slipped by 1.6%.
A lot of that comes down to affordability.
Even though buyers are still active, higher borrowing costs mean people are far more careful about what they can realistically afford. In northern regions, where property prices are generally lower, buyers still have more breathing room. In London and the South East, stretched affordability is starting to bite harder.
Sellers Need to Be Realistic
If there’s one clear message from the latest data, it’s this: buyers have options again.
According to Rightmove, there’s now more choice on the market than at any point this time of year since 2015. And that’s changing the balance of power.
Around a third of homes currently listed have already had at least one price reduction, which tells its own story. Buyers aren’t rushing in blindly anymore — they’re comparing, negotiating and waiting for value.
And homes that come to market overpriced are taking noticeably longer to sell.
Properties that eventually needed a price cut spent an average of 127 days on the market, compared with just 36 days for homes that were priced sensibly from day one. That’s a huge difference.
In other words, the days of sticking any number on a listing and expecting a bidding war are largely behind us.
Mortgage Rates Are Still High — But Slowly Improving
There is at least some good news on the mortgage front.
Rightmove’s latest mortgage tracker shows the average two-year fixed rate has eased slightly to 5.18%, down from 5.42% last month. Rates are still far higher than buyers became used to during the ultra-cheap money era, but even small drops can make a noticeable difference to monthly repayments.
Combined with lenders becoming a little more flexible following recent affordability rule changes, it’s helping keep buyers in the market — especially first-time buyers.
That’s probably why sales activity hasn’t dropped off as dramatically as some expected. Sales agreed are currently running 4% below last year’s levels, but still slightly ahead of where the market was in 2024.
First-Time Buyers Are Still Finding Ways In
The first-time buyer market is also holding up better than many expected.
Average asking prices at the lower end of the market have dipped slightly over the past year, helping affordability a little. And while saving for deposits and passing affordability checks is still tough, many buyers are clearly still determined to make moves happen.
Matt Smith pointed out that affordability is shaping the market more than a lack of demand. People still want to buy — they’re just being more cautious about budgets and much more selective about pricing.
That really sums up the market right now.
There’s still demand. People are still moving. But buyers are no longer willing to overstretch themselves or overpay just because the market is busy.
For sellers, pricing realistically has never been more important. And for buyers, patience and negotiation power are finally starting to return.