The average asking price for a UK home has reached a new record high of £379,517 in May 2025, marking the fifth consecutive year of rising prices in this month. This represents a 0.6% increase from April, according to property website Rightmove. However, this growth is the slowest for a May since 2016, indicating that the housing market is showing signs of moderation.
The slowdown in price growth can be attributed to a higher inventory of homes available for sale, which is at its highest level in a decade. With more properties on the market, buyers now have more choices, which has helped create a more balanced market. Additionally, the end of temporary stamp duty cuts in April has dampened some buyer enthusiasm, contributing to the slower pace of price increases.
Despite the deceleration in price growth, the number of homes being sold has remained strong. Sales agreed upon in the past month are 5% higher than during the same time last year. This suggests that while price growth is slowing, demand for homes remains robust, and buyers are still actively engaging with the market, despite the rising costs.
Looking ahead, mortgage rates and overall economic conditions will play a crucial role in shaping the future of the housing market. While the current market shows signs of moderation, factors such as interest rates and economic stability will continue to influence buyer behavior and market dynamics in the months to come.
