According to the real estate website, the average asking price of homes in the UK has hit a new record for the second straight month, with sellers seeking an average of nearly £380,000 in May.

RightMove found that throughout the UK, home asking prices rose by £2,335 or 0.6% in May compared to April. This brought the average asking price to a new record of £379,517 after setting a previous record last month.

It marks the fifth consecutive year of asking prices in May, a busiest time in the UK’s real estate market traditionally as sellers think their homes and gardens are ready to attract bids, and buyers start looking around.

However, monthly seasonal price increases are the lowest since 2016, as prices rises are limited by the number of homes for sale, the home's highest level in decades.

This spring, the property market is softer than usual, with new buyers lower demand this spring as buyers in England and Northern Ireland ran to surpass the deadline.

Temporary cuts to stamp duty in England and Northern Ireland, Prime Minister Rachel Reeves announced in October's budget in early April. Scotland and Wales set their taxes as home purchases.

The report found that the property market was more busy than March, while demand for new buyers dropped to 4% in April in the same month of 2024.

Still, demand so far this year is still 3% ahead of last year and there are signs of a rebound in May.

Rightmove suggests that some buyers may have been waiting for the Bank of England to drop recently. Central bank policymakers fell by a quarter earlier this month to 4.25%.

Tom Bill, head of UK residential research at real estate agent Knight Frank, said: “The interest rate environment should continue to improve and mortgage lending rules should get demand later this year. We expect the UK average price to rise by 3.5% in 2025.”

Lenders have been slowly lowering interest rates and reviewing affordability standards, allowing buyers to borrow more. According to RightMove's weekly mortgage tracker, the lowest two-year fixed mortgage rate is 3.72%, down from 4.75% last year.

"A 10-year home choice for sale means sellers need to be aware of the level of competition they face to attract buyers and sellers, as well as the price to advertise on their location," said Colleen Babcock, a real estate expert at RightMove.

Although demand for new buyers calmed in April, the number of property sales agreed last month was 5% higher than the same period last year.

"In the current market, buyers are likely to have several similar homes to choose from in their area, and overpriced homes may not be looked at again compared to competition," Babcock added.