May was especially busy this year, with agreed sales reaching a four-year high, Rightmove research has revealed.
More favourable mortgage conditions have helped, as the average five-year fixed mortgage rate is now 4.61%, compared with 6.11% at the peak in July 2023.
Across Great Britain, the number of sales agreed is now 6% ahead of the same period last year.
Colleen Babcock, property expert at Rightmove, said “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.
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.”
In Wales, the number of sales being agreed is 15% higher than at this time last year, whereas in London the figure is just 1% higher.
Rightmove labelled Heywood in Manchester a ‘sales hotspot’, as the number of buyers agreeing a deal to purchase a home nearly doubled (+88%) from May last year.
Nine out of the top ten sales hotspots in May have an average price tag below the current national average.
Nathan Emerson, chief executive of Propertymark, said “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.”
According to Zoopla’s latest House Price Index, a combination of increased property listings, and improved mortgage affordability has spurred buyers and sellers into action, pushing sales agreements to a four-year peak.
Nationwide, the number of homes available for purchase has risen by 13% compared to last year, giving buyers more options.
Adjustments in mortgage affordability assessments have also allowed borrowers to access up to 20% more funds, boosting confidence and driving a 6% increase in sales agreements compared to May 2024.
Richard Donnell, an executive director at Zoopla, said “more homes for sale means more buyers looking to move home. This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed. There are more sales and stronger house price increases in northern regions of England and Scotland, where homes are more affordable.
In southern regions of England, affordability continues to weigh on price inflation and the number of sales being agreed.”
He went on to predict that house prices are on track to be 2% higher by the end of the year.
However, Zoopla’s research shows that despite the upswing in activity, house prices have grown modestly by 1.6% over the past year. They are now £268,250 on average, with homes typically selling for £16,000 below the asking price.
The North West is the standout, with cities like Blackburn (5.8% price growth), Wigan (4.4%) and Birkenhead (4.1%) seeing robust gains.
Manchester and Liverpool, with price increases of 2.5% and 3% respectively, are also pushing demand into surrounding areas.
In contrast, southern England’s ample housing stock – up 21% in the South West, 17% in London and 15% in the South East — has kept price growth below 1%, with regions like the South East at 0.5% and the South West at 0.9%.
Scotland and Northern Ireland are seeing stronger price rises, at 2.9% and above-average levels, respectively, due to limited supply and faster sales growth.
However, Aberdeen lags with a 1.4% price drop, reflecting weaker economic conditions tied to low investment in the oil and gas sectors.