The average asking price for homes in the UK has reached a record high of nearly £380,000 in May 2025, despite lower demand from new buyers. This marks the fifth consecutive year that May has set a new record for asking prices during a typically busy period in the housing market, according to recent data.
A mortgage boost of around £2,335 per property has accompanied this rise in asking prices, reflecting a complex market dynamic shaped by lending conditions and buyer behaviour. Experts highlight how these trends affect both buyers and sellers navigating the current property landscape.
Asking Prices Continue Upward Trend Despite Subdued Demand
In May 2025, the average asking price across Britain rose by 0.6% compared with April, equating to an increase of approximately £2,335 per property. This pushed the average asking price to £379,517, setting a new record for this time of year, according to Rightmove’s latest market report.
Tom Bill, head of UK residential research at Knight Frank, noted that the improving interest rate environment and relaxed mortgage lending rules could support demand later in the year. However, the current market remains competitive, with a higher volume of homes for sale creating pressure on sellers to price realistically.
Colleen Babcock, property expert at Rightmove, emphasised the importance of competition among sellers: “The 10-year-high choice of homes for sale means that sellers need to be aware of the level of competition they’re facing for the attention of buyers, and the prices that are being advertised in their location.” She added that overpriced homes risk being overlooked amid a broad selection.
Market Conditions Create Challenges for Buyers and Sellers
Jeremy Leaf, a north London estate agent and former RICS residential chairman, pointed out that recent base rate cuts have had little immediate impact on buyer behaviour. Most sellers who are also buyers focus on the gap between the sale price of their current property and the purchase price of a new one, rather than headline figures.
Leaf also highlighted that while some asking prices remain high, many sellers are actively negotiating and aware of the consequences of missing market opportunities. This cautious approach is critical given subdued market activity and buyer dominance.
Toby Leek, president of NAEA Propertymark, described the April market lull as expected following the Stamp Duty increase in early April. He noted that the introduction of improved mortgage products is helping buyers find additional financial flexibility, maintaining market momentum.
Leek urged sellers to work with experienced agents to avoid overpricing and to aim for realistic and timely sales. This balanced approach is necessary to sustain the housing market’s resilience amid evolving economic conditions.
