The property portal added that, despite prices hitting the new high level, the late Spring market has been more subdued than usual.
Strong supply of homes for sale
This month’s price increase is the lowest at this time of year since 2016. That’s partly because the number of homes for sale is at the highest level in 10 years, which is boosting buyer choice but limiting price growth.
The number of new properties coming onto the market for sale is now 14% ahead of this time last year.
Post-stamp duty deadline lull
The traditionally strong late Spring market also followed a particularly busy first quarter of the year. Many buyers brought forward their purchases to beat the stamp duty dealine, leading to an expected dip in demand.
Rightmove noted that, after a busier than usual March, new buyer demand slowed in April to 4% below the same month in 2024.
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However, demand in the year to date is still 3% ahead of last year, and the number of sales being agreed in the last month is 5% higher than at this time last year.
The latest Bank Rate cut could also provide a boost to buyer affordability and activity later in the year. Rightmove’s weekly mortgage tracker shows that the lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% last year.
Colleen Babcock, property expert at Rightmove, said: “It’s another new price record this month, but having seen a May price record for the last five years, it appears to be driven more by seasonal factors given that new buyer demand has slowed.
“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. In the current market, buyers may well have several similar homes to choose from in their area, and a home which appears over-priced compared to the competition may not get a second look.”
