Latest Property Market Update: May 2026
The UK property market has moved into May with steady activity across sales and lettings. The spring market is well under way, but conditions remain more balanced than in the fast-moving periods of recent years. Buyers have more choice, sellers are seeing active demand where pricing is realistic.
Buying: More Choice and Steady Activity
May has brought a further seasonal lift in asking prices. The latest Rightmove House Price Indexshows the average new seller asking price rose by 1.2% in May to £378,304. This was slightly above the typical 10-year May average rise of 1.0%, although asking prices remain 0.3% lower than a year ago. Rightmove also reports that agreed sales are 4% below last year, but 2% higher than in 2024, suggesting a market that is active but still price-sensitive.
Mortgage activity is also holding up. Latest Bank of England data shows net mortgage approvals for house purchases increased to 63,500 in March, up from 62,700 in February and slightly above the previous six-month average. This points to improving confidence, although buyers are still watching affordability closely.
Tip for Buyers:
More homes on the market means more opportunity to compare carefully. Get your mortgage agreement in principle sorted early so you can move quickly when the right property appears.
Selling: Spring Demand Is Here, but Presentation Matters
For sellers, May remains one of the strongest months of the year to launch a property onto the market. Gardens are in bloom, natural light is better for photography and viewings, and buyers are generally more active ahead of the summer holidays. However, with more homes available, buyers are taking extra time to compare properties.
Nationwide’s latest House Price Index reported that annual house price growth increased to 3.0% in April, from 2.2% in March, with prices rising 0.4% month-on-month after seasonal adjustment. This supports the view that the market remains resilient, although buyers are still very value-conscious.
Official ONS data also points to modest but positive growth, with average UK house prices increasing by 1.2% annually to £268,000 in the 12 months to February 2026.
One trend becoming increasingly noticeable is the importance buyers are placing on running costs and energy efficiency. Rising utility bills over recent years mean buyers are asking more questions about EPC ratings, insulation, heating systems and overall running costs before making offers. Homes with modern boilers, double glazing and strong EPC ratings are often attracting stronger interest because buyers are thinking beyond the purchase price and considering monthly affordability too.
Outside space is also continuing to influence decision-making. Even modest gardens, home office space or multifunctional rooms are still proving popular, particularly among buyers looking for flexibility as hybrid working remains common in many sectors.
Tip for Sellers:
Before listing, look at your property through a buyer’s eyes. Small improvements such as decluttering, repainting tired rooms, improving kerb appeal or servicing the boiler can make a noticeable difference without major expense. If you have a good EPC rating or recent energy-efficiency upgrades, make sure they are highlighted.
Lettings & Landlords: Rent Growth Eases, Demand Remains
The lettings market remains busy, but rental growth is continuing to cool. The latest ONS data shows average UK monthly private rents increased by 3.4% in the 12 months to March 2026. This was down from 3.6% in February and is the lowest annual rent inflation rate since March 2022.
Regional differences remain important. In England, annual private rent inflation was highest in the North East at 6.5%, and lowest in London at 1.7%, in the 12 months to March 2026. This means landlords and tenants need to pay close attention to local conditions rather than relying on national averages alone.
For landlords, the message is not that demand has disappeared. It has not. However, affordability is becoming more of a limit in some areas, so rental pricing, property condition and tenant retention all matter.
Tip for Landlords:
With rent growth slowing, keeping good tenants is valuable. Stay on top of repairs, compliance and communication to reduce void periods.
Tip for Tenants:
Competition for good rental homes remains strong in many areas. Have references, ID and deposit funds ready before arranging viewings.
Renters’ Rights Act: What Landlords and Renters Need to Know
The Renters’ Rights Act changed how private rented properties are let in England from 1st May 2026. Government guidance confirms the reforms affect private rented sector tenants with assured or assured shorthold tenancies, while social housing tenants and lodgers are not usually covered by these changes.
Landlords and letting agents must provide tenants with the official Renters’ Rights Act Information Sheet. Government guidance states this must be given to tenants by 31 May 2026, either as a hard copy or electronically.
Key changes include the removal of Section 21 “no fault” evictions, a move to periodic tenancies, new rules around rent increases and clearer information requirements for tenants. Government guidance also confirms tenants can read the Information Sheet to understand how the reforms may affect their tenancy.
Useful for Landlords:
Check that the Information Sheet has been issued to every named tenant by the deadline. Review tenancy documents, rent increase processes and possession procedures so they reflect the new rules.
Useful for Renters:
Read the official Information Sheet carefully. It explains how your tenancy may be affected and what rights you have under the new system.
Market Outlook
May 2026 shows a market that is active, resilient and more balanced. Rightmove’s asking price data shows seasonal confidence, Nationwide reports stronger annual growth, and Bank of England mortgage approvals suggest buyers are still moving. At the same time, ONS figures show official house price growth remains modest, while rent growth is easing from previous highs.
This mix creates a more measured market. Buyers have options, sellers can still achieve good results with the right strategy, landlords need to adapt to new rules, and tenants should stay prepared in a competitive lettings environment.
What Next?
The UK property market in May 2026 is not standing still. It is moving, but in a steadier and more balanced way than in recent years. Preparation remains the common thread. Buyers need finance in place, sellers need realistic pricing, landlords need compliance under control, and tenants need paperwork ready.
Alan Cooper is here to support your next move in Nuneaton. Call 02476 349336 or email sales@alan-cooper.co.uk to speak with our team.
Note: The information in this article is based on the most recent data available as of February / March / April 2026 and may change. Always seek professional advice for specific circumstances.
