After a brief dip in April, the UK housing market showed encouraging signs of resilience in May, with new figures pointing to renewed momentum heading into the summer moving season.

According to Nationwide, the UK’s largest building society, house prices increased by 0.5% month-on-month in May, following a sharper-than-expected 0.6% decline in April. This rebound takes the average price of a UK home to £273,427, easing earlier fears that the market might face a more sustained downturn following the end of temporary stamp duty relief measures.

Annual House Price Growth Holds Steady

On an annual basis, house prices in May were 3.5% higher than the same period last year, only a slight moderation from the 3.9% annual growth seen in March. The data suggests that April’s decline was more of a short-term correction than the start of a prolonged decline, according to many market analysts.

Robert Gardner, chief economist at Nationwide, commented that:

“Underlying conditions for potential home buyers remain supportive. Unemployment is low, wage growth is running ahead of inflation, and borrowing costs have eased.”

Interest Rates & Borrowing Costs Provide Renewed Support

The housing market has also been buoyed by the Bank of England’s decision to cut interest rates to 4.25% in May – its fourth consecutive rate reduction since August 2024. Lower mortgage rates are beginning to feed through to borrowers, improving affordability and restoring confidence for both first-time buyers and existing homeowners.

In fact, mortgage approvals have begun to climb again, with estate agents reporting growing levels of buyer enquiries and viewings. Zoopla, for example, noted that agents were busier in May than at any point since the post-lockdown “race for space” in 2021, with a 13% increase in homes listed for sale compared with spring 2024.

Buyers Regain Confidence Despite Stamp Duty Changes

The positive market momentum has come despite the recent reduction in stamp duty thresholds, which took effect from April 1. First-time buyers now face stamp duty on properties priced above £300,000 (down from £425,000 previously), while the threshold for all other buyers has dropped from £250,000 to £125,000.

While this change could have cooled demand, buyer confidence appears to have been supported by broader economic factors including rising wages, improved consumer sentiment, and the stabilising interest rate environment.

“The increase in Nationwide house prices adds to the evidence that the recent soft patch was a temporary blip,” said Alex Kerr, UK economist at Capital Economics. “We expect market momentum to continue, especially as financial conditions improve.”

The Summer Moving Season Begins

With prices starting to climb again, many experts believe that rising prices may even spark a renewed sense of urgency among prospective buyers, keen to secure a property before affordability pressures return.

At Doree Bonner International, we are seeing this early summer confidence reflected in growing demand for local, national, and international moves. As one of the busiest periods of the year approaches, we encourage anyone planning a summer move to get in touch early – even if a firm moving date is not yet in place.

Booking early allows you to:

  • Reserve priority dates during peak season
  • Secure expert packing, storage, and moving services well in advance
  • Avoid last-minute stress and potential schedule constraints

Let Doree Bonner handle your move with care and confidence.
Whether you’re relocating across town or across the globe, our experienced team will support you at every stage of the process.

Get a free online moving quote today or contact our experts 24/7 for tailored advice.