May House Price Index 2026: The UK housing market isn’t in crisis, but pricing has to be realistic
If you only read the headlines, you would think the UK housing market is falling apart. In reality, that simply is not what we are seeing.
The market is still moving. Buyers are still buying. Homes are still selling. What has changed is that the market has become far less forgiving when it comes to pricing.
According to the latest Rightmove House Price Index, the average asking price of a property coming to market rose by 1.2% in May to £378,304, reflecting the typical spring uplift in activity. However, the annual picture remains more mixed, with average asking prices nationally still down 0.3% year-on-year.
The bigger story is competition. Buyer choice is now at its highest level for this time of year since 2015, giving purchasers more options, more negotiating power, and a greater ability to compare value side-by-side.
In this market, the homes that stand out are not necessarily the cheapest- they are the homes buyers perceive as correctly priced from day one.
The “Nobody Is Buying” Narrative Isn’t True
One of the biggest misconceptions in the current market is the idea that buyers have disappeared altogether.
If demand had truly collapsed, sales agreed figures would be falling sharply. They are not.
Rightmove reports that sales agreed are currently only 4% below this time last year. That is not a market in freefall- it is a market where affordability and value now play a much bigger role in buyer decision-making. Buyers are still active, but they are becoming more selective.
More Choice Changes Buyer Behaviour
One of the most important shifts in today’s market is supply.
With more homes available, buyers can compare properties far more easily than they could over the last few years. That naturally leads to longer decision-making, tougher negotiations, and buyers being more willing to walk away if something feels overpriced.
This is why pricing strategy matters more than ever. Rightmove’s latest data highlights the difference clearly:
Homes that sold without requiring a price reduction took an average of 36 days to secure a buyer.
Homes that needed a price reduction took an average of 127 days to sell.
If a property launches too high and then gradually reduces over time, it often loses the momentum that generates the strongest interest early on. Meaning that the first few weeks of marketing remain the most important period for any property launch.
The North-South Divide Continues
National property averages rarely tell the full story.
Rightmove’s latest figures continue to highlight a divide between more affordable northern regions and higher-priced southern markets.
Areas across the North are generally holding up more strongly, while parts of London and the South East are continuing to see year-on-year price falls.
This reflects the affordability pressures buyers are facing. In a market where mortgage costs remain relatively high, buyers are becoming increasingly focused on value and monthly affordability rather than speculative growth.
Mortgage Rates Are Gradually Improving
Mortgage rates are still considerably higher than the ultra-low levels seen a few years ago, but there are signs of gradual improvement.
Rightmove’s mortgage tracker shows the average two-year fixed mortgage rate now sits at 5.18%, down from 5.42% the previous month.
These may seem like small movements, but even slight reductions in rates can significantly improve affordability calculations, particularly for first-time buyers or those borrowing at the top end of their budget. Confidence in the market often returns gradually rather than all at once.
What This Means If You’re Selling
This is the part many headlines miss entirely. The market is not broken, it is simply more competitive.
Presentation still drives viewings, but realistic pricing is what converts viewings into offers.
If you are preparing to sell, the focus should be on:
Pricing to generate demand within the first few weeks
Understanding how your home compares to competing listings nearby
Launching with strong photography, presentation, and marketing
Responding quickly and proactively to consistent buyer feedback.
Testing the market at an aspirational figure is becoming increasingly risky in a market that is more saturated.
The Redbrik View
At Redbrik, we are not seeing a housing market crisis. We are seeing a return to fundamentals.
The homes performing best are the homes launched with the right pricing strategy, strong presentation, and a clear understanding of what today’s buyers are looking for.
The market has become more balanced, more selective, and more value-driven, but motivated buyers are absolutely still there.
If you are thinking of selling, or your property has been on the market longer than expected, our teams across Sheffield, Chesterfield, and the surrounding areas can provide an honest, evidence-led pricing strategy designed to help you move with confidence.
Contact your local branch →
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