Property Market Update | May 2025
May has arrived with a mixed but cautiously optimistic outlook for the UK property market. Following the seasonal spring uplift in activity, trends are starting to reflect both renewed confidence and continued adjustment. House prices are rising - though more slowly - mortgage rates are easing, and the rental market remains stretched.
Here's what you need to know this month if you're buying, selling, letting, or renting.
House Prices: Modest Growth as Listings Surge
The average asking price of a home coming to market hit a new high of £379,517 in May, according to Rightmove . However, the pace of growth has eased, with prices up just 0.6% from April, marking the smallest May increase since 2016. A key factor here is supply. The number of properties coming to market is up 12% year-on-year, giving buyers more choice and putting pressure on sellers to be competitive.
Demand for homes meanwhile, remains solid, with buyer enquiries 3% higher than this time last year. Some analysts, including those cited in The Times , suggest this year could see national house price growth of 3.5%, buoyed by falling mortgage rates and improving economic stability.
If you're planning to sell your home in, this is still a favourable window - especially with more buyers entering the market - but accurate pricing and strong marketing are more important than ever.
Mortgage Market: Rates Continue to Fall
The Bank of England held its base rate at 4.25% this month following a 0.25% cut in April. That move has helped ease mortgage costs, which had been a major obstacle for buyers throughout 2024. As of mid-May:
The average two-year fixed mortgage rate is 4.61%
The average five-year fixed rate is 4.59%
Some of the lowest available fixed deals are now dipping below 4% for buyers with larger deposits
This marks a clear shift from the 6% plus rates seen last year and is improving affordability across the board. Buyers should still get a mortgage agreement in principle before making offers - particularly in areas where properties are selling quickly.
Sellers: Strong Interest, but More Competition
The traditional spring bounce in the sales market is in full swing. More sellers are listing their homes, and buyers are active again. But with supply at its highest point in over a decade, competition between sellers has also ramped up.
The most successful sellers in this market are the ones who price realistically and ensure their property looks its best online. That means professional photography, tidy kerb appeal, and well-maintained interiors. With many buyers looking to move before the summer holidays, now is an ideal time to list - just make sure your home stands out.
Buyers: More Choice, but Be Ready
With supply improving, buyers now have more choice and, in many cases, a bit more bargaining power. But desirable homes are still being snapped up quickly, especially those priced in line with current local demand.
Preparation is key: get your mortgage sorted, have a solicitor lined up, and be ready to act fast when the right property comes up. Pay attention to factors like EPC ratings and transport links, as these remain top priorities for many homeowners and investors.
Rental Market: Still Tight, but Rent Increases Slowing
The rental sector remains under pressure, but there's some sign that the breakneck pace of rent growth is finally cooling.
According to the Office for National Statistics , the average UK private rent hit £1,332 per month in April, a 7.7% increase year-on-year. England saw rents rise to £1,386, Wales to £792, and Scotland to £1,001. This is still a significant jump, but down slightly from previous months, suggesting rent inflation may be levelling off.
Tenant demand remains high, and rental stock remains low in many regions, particularly for family homes and pet-friendly properties. If you're a tenant, it’s worth acting quickly when something suitable comes up - and ensuring your paperwork is ready.
Landlords: Changing Legislation on the Horizon
The proposed Renters’ Rights Bill continues to make its way through Parliament and, if passed, will bring sweeping reforms to the rental sector. The current draft includes:
Abolishing fixed-term assured shorthold tenancies
Making all tenancies periodic by default
Limiting rent increases to once per year
Increasing notice periods for landlords who wish to sell
This legislation will change how landlords manage tenancies and may influence investment decisions for new entrants. Staying on top of compliance will be crucial. Now is a good time to review tenancy agreements and ensure property management processes are up to date.
Looking Ahead: A Market Adjusting, Not Retreating
The remainder of spring and early summer is expected to be busy. More listings will continue to bring balance to the market, while lower mortgage rates may encourage more first-time buyers and movers who sat out last year.
We’re not in boom territory, but this is a far more stable environment than we saw throughout much of 2023 and 2024. For sellers, it’s a good time to act - but not a time to overprice. For buyers, it’s a market full of opportunity, but preparation remains key.
Landlords will want to keep an eye on changing legislation and consider how their investments might need to adapt. Meanwhile, tenants should continue to expect high competition and rising rents, albeit at a slightly gentler pace.
If you'd like tailored advice about your next move - whether that’s buying, selling, letting, or renting - get in touch with the friendly team at Maison Partnership. Call 0333 242 3292 or email concierge@maisonpartnership.com today.
We have the local market knowledge and property insights to guide you every step of the way.
