Improved rates and increased buyer demand fuel rise in transactions
The UK housing market saw its busiest May for agreed property sales since 2021 and the busiest out of any month since March 2022, according to new data from Rightmove, pointing to improved market conditions as borrowing costs continue to ease.
While May is traditionally a high-activity month due to seasonal trends and earlier buyer interest, this year’s figures suggest deeper momentum. The average five-year fixed mortgage rate currently stands at 4.61%, down from the July 2023 peak of 6.11%.
Nationally, agreed home sales are 6% higher than the same time last year, with growth varying widely by region. Wales saw a 15% increase in agreed sales, while London recorded a marginal 1% rise.
Heywood, in Greater Manchester, led regional growth with an 88% year-on-year jump in transactions. Pudsey in West Yorkshire followed with an 85% increase, and Wilmslow in Cheshire saw sales climb by 66%.
The top-performing areas tend to offer more affordable homes. Nine out of the 10 leading sales locations in May had average asking prices below the national average, suggesting that buyers are prioritising value.
“This month’s hotspots reflect broader market trends driven by affordability and attractive property prices,” said Colleen Babcock (pictured left), property expert at Rightmove. “With mortgage rates higher than the lows we saw post financial crisis, and affordability stretched, many buyers are continuing to look for value, which is likely reflected in the lower-than-average prices of some of the current hotspots.
“With the overall number of sellers continuing to run at a decade-high, sellers need to also be mindful of the competition they might face from other sellers trying to secure a buyer in their area.”
Rightmove advised vendors to work closely with agents to ensure realistic pricing in a competitive landscape.
Nathan Emerson (pictured right), chief executive of industry body Propertymark, pointed to a convergence of positive factors supporting market activity.
“With house prices adjusting, mortgage products improving, and overall confidence from buyers and sellers on the up, this is evidently creating the perfect combination and propelling the housing market forward,” he said.
He noted that population growth and a strong pipeline of buyers were also supporting demand. Despite recent increases to stamp duty in England and Northern Ireland, Emerson said the market remained resilient as buyers stayed committed to moving plans heading into the traditionally busy summer months.
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