The UK property market has recorded its busiest May for agreed sales since 2021 – and the most active month overall since March 2022 – as falling mortgage rates and improved buyer confidence fuel renewed momentum in transactions.
New data from Rightmove reveals that sales agreed in May 2025 were 6% higher than in the same month last year, signalling a sustained recovery in market sentiment following a turbulent 2023.
The average 5-year fixed mortgage rate has dropped to 4.61%, down significantly from a peak of 6.11% in July last year.
Although rates remain well above the ultra-low levels seen post-financial crisis, the reduction is beginning to feed through into buyer activity.
STRETCHED AFFORDABILITY
Colleen Babcock, property expert at Rightmove, says: “This month’s hotspots reflect broader market trends driven by affordability and attractive property prices.
“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.”
And she adds: “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.
“Working with a local agent to price realistically and competitively for that market, rather than pricing too high, is one way to increase the likelihood of a successful sale.”
REGIONAL DISPARITIES
In Wales, sales agreed are up 15% year-on-year, while London has seen just a 1% increase. Analysts suggest that affordability is playing a major role in driving activity, with buyers gravitating to areas where value remains strong.
May’s most active local market was Heywood in Greater Manchester, where the number of deals agreed surged by 88% compared with May 2024. Pudsey in West Yorkshire (+85%) and Wilmslow in Cheshire (+66%) rounded out the top three.
Interestingly, nine out of the top 10 fastest-moving markets have average asking prices below the national average, reinforcing the narrative that cost-conscious buyers are dominating transaction volumes.
PERFECT COMBINATION
Nathan Emerson, Chief Executive of Propertymark, says: “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.
“Alongside this, the country’s increasing population and rise in the number of people looking to buy a home are playing a key part in this growing trend.
“Despite rises in stamp duty commencing across England and Northern Ireland from April, those serious about moving home have not let this dampen their home moving plans. As we move into summer, which is a traditionally busier time of the year, we expect to see more properties on the market, ultimately providing movers with more choice, which can lead to easier negotiations.”
