Latest: May property market report

May delivered several important insights for landlords, investors and property owners. While much of the attention focused on asking prices and sales activity, the latest data from Rightmove, Zoopla and HomeLet also highlighted continued strength in the rental sector, rising rents and improving yields for landlords.

Whether you're growing your portfolio, considering a purchase, reviewing rents or simply keeping an eye on market trends, here's what the latest property market data tells us.

House Sellers Continue to Struggle With Overpricing

May was the month everyone learnt something about asking prices. Both portals came to the same conclusion about the same matter. Unrealistic pricing is a market-wide problem and sellers need to adjust for the best chance of sales success.

Let's look at the data in detail. Zoopla measured sales levels over the past three years. It asked more than 2,000 UK residents who tried to sell in that timeframe about their outcome. Almost half of the homes listed (44%) failed to sell.

Over-Ambitious Sellers Confess

Participants were asked why they couldn't find a buyer. A pricing issue was the most common reason. More than a third (34%) looked back and realised they'd set an unrealistically high asking price at the start. A further 16.2% knew their home was overpriced before they came to market.

Price Reductions Damage Prospects

Zoopla's research sends a warning to sellers hoping to achieve success without compromise. Of those sellers who did manage to sell their home, 53% reduced their asking price to attract a buyer. It's a trend evidenced recently, as the portal revealed the average UK home sold for 3.5% below the asking price in the first three months of 2026.

The sentiment over at Rightmove was similar. It said 'over-optimistic' initial pricing was behind longer selling times and eventual asking price cuts to 32% of homes for sale. Sellers should also note that Rightmove found a property needing a price reduction took 91 days longer to sell than one where the asking price wasn't reduced.

House Prices Continue to Rise

Sellers continue to be optimistic about the market. Rightmove's latest House Price Index revealed asking prices increased month-on-month during May. The average asking price of a property coming to market jumped 1.2% to £378,304.

Our advice remains to obtain an up-to-date valuation and price in line with your local market, particularly for landlords considering selling, refinancing or expanding their portfolios.

Renting vs Buying: The Market Remains Finely Balanced

The market remains finely poised. Only in April did TwentyCi's Q1 2026 Property & Homemover Report claim it was cheaper to buy a home than rent. In May, the pendulum swung back in the other direction.

Rightmove declared it was cheaper to rent than buy for the first time since June 2025. The portal qualified this by saying the average monthly rent in Great Britain was lower than a typical new mortgage payment. The saving? Renters were £123 better off every month.

For landlords, this may help support continued tenant demand as some would-be buyers delay their move onto the property ladder.

Newly Agreed Tenancies Increase in Cost

These trends should be viewed alongside further emerging research from May. HomeLet's latest Rental Index found the UK's average rent for a newly agreed tenancy increased again.

New tenancies now cost an average of £1,340 per month, representing a 1.1% increase compared to April. This continued growth underlines the ongoing strength of the rental market and the importance of well-managed rental properties.

Mortgage Rates Continue to Influence the Market

Also impacting whether it's cheaper to buy or rent are mortgage rates. While these increased in April due to international uncertainty, May saw lenders reduce rates attached to some two- and five-year fixed mortgages.

The future direction of mortgage rates will depend on movements in the Bank of England base rate and inflation, making this an area landlords and investors should continue to monitor closely.

Landlords Enjoy Increased Yields

Renting remains a critical option for many home movers, whether they are priced out of the sales market or simply prefer the flexibility.

This sentiment is one reason a growing number of landlords are holding firm with their buy-to-let activity.

The latest Landlord Trends Report, co-produced by Foundation and Pegasus Insight, revealed 84% of landlords are making a profit from lettings, with average rental yields increasing to 6.5%.

The number of landlords planning to remain active in the buy-to-let sector also increased, rising from 58% to 63%.

What Does This Mean for Landlords?

The latest data points to a rental market that remains resilient, with rising rents, healthy yields and strong tenant demand continuing to support investment returns.

If you would like to discuss rental values, portfolio performance, buy-to-let opportunities or the local property market, please get in touch with our team.