Latest: May property market report

Both portal heavyweights provided a monthly snapshot of the sales market in May. As ever, Rightmove focused on asking prices. The UK’s average asking price for new instructions increased 0.6%, with a more expensive advertised price of £379,517.

Rightmove also found the number of new properties for sale was 14% more in May 2025, compared to May 2024. Additionally, the number of sales agreed last month was 5% higher year-on-year. The portal says lower mortgage rates have boosted buyer power.

Mortgage rates trend downwards

The latest Moneyfacts UK Mortgage Trends Treasury Report gave us more detail. Its data showed average fixed mortgage rates have dropped month-on-month. Average rates on two- and five-year, fixed-rate mortgages are now 5.18% and 5.10%, respectively.

House prices stabilise

Zoopla’s May house price index revealed no change in asking prices in the last monitoring period, with the UK’s average home value remaining at £268,200. When tracking completions, the portal found the number of sales agreed in May was the highest for 4 years - up 6% on 2024. There were also 13% more homes for sale in May 2025, when compared to May 2024.

Homeowners in Wales perhaps cheered the loudest. Principality Building Society’s Wales House Price Index revealed the country experienced its biggest quarterly house price increase since 2022. The average price of a Welsh home is now £238,413 – a 4% annual increase.

The importance of a property survey was also highlighted in May. A study of 2,186 recent UK homebuyers by property preservation company, Peter Cox, found 44% of purchasers who didn’t have a professional building survey had to complete remedial work within a year of the purchase. Of those, 49% spent more than £3,000, while 15% ended up paying in excess of £10,000.

Homebuyers can commission one of three types of survey to assess the condition of a property. These are known as a Level 1 Condition Report, a Level 2 HomeBuyer Report and a Level 3 Full Structural Survey. Worryingly, 15% of respondents admitted to not commissioning any form of survey before purchasing their home. 

Always good reading, the latest Handelsbanken Property Investor Report was released in May. Of the property investors it questioned, 54% planned to increase the size of their portfolios in the next 12 months. Interestingly, the majority of investors felt interest rates, changes to EPC requirements and the Renters’ Rights Bill were having no impact on the rental market. 

Monthly rents increased in May

The decision to keep with private lets and expand portfolios is due, in part, to rent value trends. HomeLet’s data showed rent rises are strengthening, with a jump of 0.8% during its last monitoring period. The UK’s new average monthly rent is £1,298.

The most prominent rent increase was seen in the South West, where rents rose 2.1%. This was followed by Yorkshire & The Humber (1.5%) and Northern Ireland (1.5%). Rents in Scotland increased 0.5%.

Energy upgrades needed

Finally, there was an interesting report released in May on the energy efficiency of the UK’s housing stock. According to UNCLE, in excess of 15 million UK homes have an EPC rating of D or below. This is a concern for landlords in England and Wales, whose properties will need an EPC rating of at least a C in 2028 (new rentals) and 2030 (all buy-to-lets). 

Only 0.4% of homes currently possess an A-rated EPC. Milton Keynes, Peterborough, Westminster and Cambridge were found to have the most homes with an EPC rating of C or above. Blackpool, Southend-on-Sea, Bradford and Stoke-on-Trent have the least energy efficient properties.

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