UK PROPERTY MARKET : 18 MAY 2026Rightmove's May 2026 House Price Index records average new seller asking prices at £378,304, up 1.2% on the month, while 32% of homes on the market have had at least one price reduction and buyer choice sits at an 11-year high for this time of year.
Rightmove released its May 2026 House Price Index on 18 May 2026, showing that average new seller asking prices rose by 1.2% month-on-month to £378,304, an increase of £4,333. The rise is slightly above the typical 1.0% May increase seen over the previous decade. Year-on-year, however, average asking prices remain 0.3% lower than May 2025.
The headline price growth masks an unusually divided market. Buyer choice on the Rightmove platform is at its highest level for May since 2015. Around 32% of homes currently listed have undergone at least one price reduction, with the regional split running sharply north against south. Average two-year fixed mortgage rates have eased from 5.42% last month to 5.18% this month, although they remain well above the 4.25% recorded before the Iran conflict began on 28 February 2026.
Key Facts
- Average new seller asking price: £378,304 (up 1.2% on April 2026, down 0.3% year on year)
- 32% of homes currently on the market have had at least one price reduction
- Buyer choice at highest May level since 2015
- North East asking prices up 2.7% year on year; London down 2.4%
- Average two-year fixed mortgage rate: 5.18% (down from 5.42% last month)
- Properties sold without a price reduction took an average of 36 days; reduced homes took 127 days
The May 2026 headline figures
Rightmove measures the asking price of newly listed property on its platform rather than completed transaction prices. Its index is the earliest monthly read on the UK housing market and traditionally precedes the Halifax, Nationwide and Land Registry indices by several weeks. The May 2026 reading of £378,304 is the highest nominal figure on record for any month, but the year-on-year comparison shows asking prices still trail May 2025 by 0.3%.
Colleen Babcock, Rightmove's property expert, said the 1.2% monthly rise was broadly in line with seasonal expectations but flagged that the gap between well-priced and over-priced property has widened. Homes that did not require a price reduction sold in an average of 36 days. Homes that needed at least one reduction sold in an average of 127 days, around three and a half times longer.
The north-south divide in 2026
The headline 1.2% monthly increase conceals a stark regional pattern. The North East recorded the strongest year-on-year growth at plus 2.7%, followed by the North West at plus 2.6%. At the other end, London asking prices were down 2.4% year on year and the South East was down 1.6%.
The pattern is consistent with the affordability divide that has shaped the UK market since interest rates began rising in 2022. In the south, where the price-to-income ratio is highest and mortgage size has the biggest impact on monthly affordability, higher rates compress demand more aggressively. In the north, where average asking prices are substantially lower and a higher proportion of buyers can complete with smaller mortgages or as cash purchasers, demand has held up better.
What the 32% reduction figure tells us
Around a third of homes currently listed on Rightmove have had at least one asking price reduction since they came to market. This is higher than the long-run average and reflects two pressures. First, sellers entered the spring market with optimistic pricing assumptions that were set before the renewed mortgage rate volatility triggered by the Iran conflict. Second, the volume of property coming to market is at its highest May level since 2015, giving buyers significantly more options and weaker urgency to commit.
Rightmove's data shows that the cost of getting initial pricing wrong is significant. A home that ultimately requires a price reduction sells, on average, 91 days later than a home priced correctly from the outset. For sellers in chain transactions or under time pressure, the difference between the two outcomes is the difference between completing in summer and slipping into autumn.
Mortgage rates and the affordability picture
The average two-year fixed mortgage rate on the Rightmove tracker fell to 5.18% in May 2026 from 5.42% in April. Lenders re-priced upward sharply between late February and March as swap rates rose in response to the conflict in the Middle East, then gradually unwound some of those increases through April and May as oil prices stabilised, before the recent re-escalation pushed Brent back above $110 per barrel. Mortgage rates remain materially above their pre-war level of 4.25%.
For a buyer borrowing £250,000 over 25 years, the gap between a 4.25% rate and a 5.18% rate is approximately £132 per month, or £1,584 per year. That is the affordability headwind explaining why sales agreed in May 2026 are 4% lower than the same period in 2025, when mortgage rates were notably lower. The first-time buyer segment is holding up better than expected, helped by the FCA's 2024 confirmation of greater flexibility on stress testing and last year's review of the Loan-to-Income cap.
What sellers and buyers should take from this report
For sellers, the central message from Rightmove's May 2026 data is that pricing the property correctly from the outset matters more than ever. Buyer choice is the highest for May in 11 years. A property that needs a reduction is statistically likely to take three and a half times longer to sell, and homes carrying a reduction often anchor buyers around the reduced figure as a starting point for further negotiation.
For buyers, the same data points to negotiating leverage that has not been available at this scale since 2015. Around a third of listings carry a visible reduction signal, and the spread of two-year fixed rates has compressed slightly. The risk on the buyer side is that mortgage rates may not continue to fall: the renewed rise in oil prices through May 2026 has pushed swap rates back up and lenders may begin re-pricing upward again in the coming weeks.
Disclaimer: This article reports on the Rightmove May 2026 House Price Index and broader UK property market data. It is general information, not personal financial or property advice. Mortgage rates, asking prices and market conditions can change rapidly. Anyone making property buying, selling or remortgaging decisions should obtain advice from a regulated mortgage broker or property professional. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority.
Frequently asked questions
What is the Rightmove House Price Index
The Rightmove House Price Index measures the asking price of property newly listed for sale on Rightmove's platform during the relevant month. It is published monthly and is the earliest read on the UK housing market, preceding the Halifax, Nationwide and Land Registry indices. Because it reports asking prices rather than completed sale prices, it is a leading rather than a confirmed indicator.
How much did UK house asking prices change in May 2026
Average new seller asking prices rose by 1.2% month-on-month in May 2026 to £378,304, an increase of £4,333. The year-on-year change is a fall of 0.3% versus May 2025.
Why are 32% of UK homes on the market having price reductions
Around 32% of homes currently listed on Rightmove have had at least one asking price reduction. The combination of optimistic spring pricing, more property coming to market than at any May since 2015 and renewed mortgage rate volatility linked to the Iran conflict has reduced buyer urgency. Sellers who priced ahead of these shifts are now adjusting downward to attract interest.
What is the current UK average two-year fixed mortgage rate
The Rightmove daily mortgage tracker shows the average two-year fixed mortgage rate at 5.18% as of May 2026, down from 5.42% in April. The figure was 4.25% before the Iran conflict began on 28 February 2026.
Where in the UK are house prices rising and falling
According to Rightmove's May 2026 regional data, year-on-year asking prices are up 2.7% in the North East and 2.6% in the North West. London is down 2.4% year on year and the South East is down 1.6%. The pattern reflects affordability differences across the regions.
Related guides
- UK Mortgage Rates and the Iran War: Why Borrowing Costs Are Rising
- Best UK Mortgages: Comparison Hub
- First-Time Buyer Mortgages UK
- UK Remortgage Guide
Sources and verification
- Rightmove House Price Index, May 2026 release (18 May 2026)
- Rightmove daily mortgage tracker data (Podium Solutions, covering 95% of UK mortgage lending)
- Office for National Statistics, UK House Price Index methodology
- Bank of England, "Bank Rate maintained at 3.75%" (30 April 2026)
- Financial Conduct Authority statements on mortgage lending stress testing flexibility (2024)
