House prices set new records as sales volume reaches a four-year high

Despite a decade-high number of homes for sale in the UK, the average asking price of new sellers saw a healthy 0.6% increase (+£2,335) in May, signalling a robust Spring market. The number of sales agreed was also 6% higher than the same time last year, marking a seasonal best average for the previous four years.

Market rebound after Easter lull and end to relaxed SDLT

According to Rightmove, property prices in May were 1.2% (+£4,554) higher than last year, with the average price of a UK house reaching £379,517. Similarly, average property prices in London increased by 0.7% YoY (+£4,914) to reach £701,990. April and May witnessed subdued buyer activity after an expected rush through the first quarter of 2025 when buyers were looking to beat the relaxed SDLT deadline.

Record number of sellers in a buyer’s market

While the number of new properties for sale increased by 14% from last year, data published by Zoopla revealed a 3% (£16,000) drop in the agreed sale price of an average house. The property portal also said the average estate agent has 35 homes for sale, suggesting better buyer negotiation power. However, with seller activity outpacing buyer demand, sellers are expected to observe caution when pricing properties.

Interest rates slashed amidst rising inflation

In May, the Bank of England slashed its base rate by 25 basis points from 4.5% to 4.25% to boost buyer affordability in the housing markets. Set at its lowest level in two years, the decision to slash the base rate came in after consumer inflation jumped by 0.9% to 3.5% in April from 2.6% in the previous month. According to Rightmove’s weekly mortgage tracker, the lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% last year.

London’s prime postcodes add more high-value properties

Of the 4,708 properties listed for sale across the UK capital’s prime postcodes, 43% (2,024) boasted a price tag of £1m or more. At 93%, Mayfair recorded the highest influx of £1m+ properties, followed by other prime postcodes such as Knightsbridge (90%), Barnes (82%), Belgravia (79%), Fitzrovia (71%) and Marylebone (68%).

North Gate Park consultation and viewings in Hong Kong

Following the successful showcase of North Kensington Gate in May, our Hong Kong office is all set to host exclusive 1-to-1 private consultations followed by London viewings of North Gate Park. Set in the vibrant Green Lanes neighbourhood, a rental growth forecast of 20.7% in the next four years underscores strong investment potential in the N15 postcode.

East Malaysia road show of exciting London properties

After concluding a successful launch of The Edit, an upcoming Zone 1 London riverside development in Kuala Lumpur, our Malaysia office is all set for the forthcoming East Malaysia road show this June. The team will showcase exciting London developments across Zones 1 to 4 in Kota Kinabalu and Kuala Lumpur.

Rents continue to rise in the UK and its capital

According to the latest update by the Office of National Statistics (ONS), the average monthly rent in the UK rose 7.4% to £1,335 in the 12 months to April 2025. At the same time, London experienced 8.4% rental inflation, with the average monthly rent at £2,246. Amongst Boroughs, Kensington and Chelsea recorded the highest average monthly rent of £3,663, while Bromley recorded the highest annual rent growth of 11.1% followed by 9% growth in Barnet.

Continued demand pressures a boost to investors

Although the supply-demand imbalance in London’s rental sector has eased recently, Zoopla’s latest report revealed there are still 12 renters chasing every available home to rent. This is encouraging news for property investors and landlords looking to invest in London’s thriving rental market.

Benham and Reeves is a leading estate and lettings agent based in London. We have 21 branches across the capital and 14 international offices worldwide. You can contact us for all your property buying, selling and letting needs.