In a surprise announcement, Rightmove says the average price of property coming to market has risen 1.2% in the past month.

This is actually higher than the typical May increase of 1.0% seen over the past decade. 

Meanwhile buyer choice is at its highest for this time of year since 2015.

But 32% of existing homes for sale have seen a price reduction and Rightmove is warning new sellers need to price more competitively.

It states: “Over-optimistic initial pricing is leading to longer selling times.”

The portal’s monthly market snapshot continues: “The housing market remains confident overall despite global uncertainty and resulting cost-of-living pressures, with the number of sales agreed just 4% below last year when mortgage rates were significantly lower. 

“The number of sales agreed in the heavily mortgage-dependent first-time buyer sector is continuing to hold up (also 4% below last year) but is dependent on lenders continuing to lend at higher Loan-To-Value ratios.”

However, Rightmove admits that buyer affordability is driving a clear year-on-year north–south divide, with the more affordable North East (+2.7% price rise this month) and North West (+2.6%) continuing to grow, while London (‑2.4%) and the South East (‑1.6%) are seeing price falls.

Colleen Babcock, property expert at Rightmove, says: “All sellers should note that buyer choice is now at its highest level for this time of year since 2015. 

“Getting the asking price right from the outset is therefore increasingly important, as homes priced too ambitiously are taking longer to sell. 

“Our research shows that a home that’s been reduced takes on average 91 more days to sell than a home that hasn’t needed to be reduced.”