Regional affordability shapes latest pricing trends
The housing market continues to surprise with its resilience, but affordability is driving a continuing north-south price growth divide, according to the latest Rightmove House Price Index.
The May figures show that month-on-month average house prices rose 1.2% in May to £378,304. That exceeds the typical ten-year May increase of 1% but is down 0.3% since May 2025.
Buyer choice remains at its highest since 2015 but with a third (32%) of homes for sale seeing a price reduction Rightmove warns that correct pricing continues to be key, especially if deals are to be done fast.
Sales agreed are 4% below last year, although at that time mortgage rates were significantly lower. They are up 2% on the same period in 2024.
Average two-year fixed mortgage rates have fallen slightly, down from 5.42% last month to 5.18% this month, helping to boost buyer confidence and affordability. First-time buyers are also holding up, with the number of sales also 4% down, but only 1% lower than 2024. However, Rightmove says this is partly because of lenders offering higher loan-to-value ratios.
North-south divide
The north-south divide is increasingly noticeable, according to the latest figures. Prices continue to grow in the more affordable north-east (up 2.7%) and north-west (up 2.6%), but continue to fall in London (down 2.4%) and the south-east (down 1.6%).
Colleen Babcock, property expert at Rightmove, said: “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 is holding up well, consistent with trends we’ve seen in 2026 so far. However, this overall positive national monthly snapshot masks a north-south divide in year-on-year seller pricing power. Prices are rising in the north, but all sellers should note that buyer choice is now at its highest level for this time of year since 2015.
“What’s encouraging is how resilient activity has remained, even among first‑time buyers. The number of sales agreed in the first-time buyer sector is performing better than expected and is broadly tracking the wider market.
Prices in the typical first-time-buyer sector are lower than a year ago, helping to support affordability. It’s a healthy dynamic that activity is continuing not because buyers are overstretching, but because prices are adjusting to levels that some would-be buyers can realistically afford.”
