The average price tag on a home has hit a record high for the second month in a row, with sellers asking for nearly £380,000 on average in May.
Across Britain, the average asking price for a home coming on the market jumped by £2,335 or 0.6 per cent month-on-month, according to Rightmove.
This took the average asking price to a record £379,517 in May, following April's record high.
Asking prices have now reached new record highs in the month of May for the past five years.
The volume of sales agreed in the past month is 5 per cent higher than at this time last year
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Rightmove said that prices this month have risen slower than usual, following a stamp duty deadline stampede earlier in the year.
After a busier-than-usual March, new buyer demand slowed in April to 4 per cent below the same month in 2024, as stamp duty discounts became less generous for some home buyers from April.
However, demand in the year to date is still ahead of last year, with early signs of a bounce back in May.
The volume of sales agreed over the past month is 5 per cent higher than at this time last year, indicating that a wider choice is tempting buyers.
Mortgage rates will be crucial in determining the level of buyer activity for the rest of the year, according to Rightmove.
Colleen Babcock, a property expert at Rightmove, said: "Despite April's dip in new buyer demand, there are early signs of a bounceback in May.
"Mortgage interest rates are lower than they were at this time last year, and the recent cut also gives us some optimism for further mortgage rate drops that will enable more to buy."
She added: "With a high number of sellers and a small dip in buyer demand, it's worth reminding people out there thinking of coming to market that they need to work hard to attract buyer attention."
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Mortgage interest rates are lower than they were at this time last year
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David Gardner, managing director at DDM Residential in Lincolnshire, reported "strong agreed sales across northern Lincolnshire, currently tracking notably higher than May 2024" due to improved stock availability and more favourable mortgage rates.
In London, the picture is different. Polly Ogden Duffy of John D Wood & Co noted some sellers and buyers are pausing "as the impact of political and economic headwinds takes time to settle."
Andrew Groocock from Knight Frank warned that sellers need to get asking prices right initially, while David Johnson of Inhous observed that central London prices are seeing "a slight adjustment" as wealthy investors decide to sell.
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