The average price of newly-listed homes for sale rises by 1.2% in May. This is a greater rise than the ten-year May average of 1.0%.
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Property market news
The average price of newly-listed homes for sale has fallen by 0.6% this month to £376,191, leaving prices 0.5% below a year ago.
Early summer
May’s unusual heatwave kick-started summer earlier than usual this year, and the World Cup may prove to be a summer distraction for home-movers. In addition, economic challenges and global uncertainty continue.
Demand from buyers in May was down 10% compared to last year, but is still largely in line with what we’ve seen so far this year. Higher mortgage rates are continuing to affect activity, while the wider choice of homes for sale is encouraging buyers to take a less urgent approach unless a property really stands out on its price or presentation.
Despite these challenges, sales activity remains steady overall. The number of sales agreed are down 6% compared with last year, but are broadly in line with recent years, almost the same as 2024 and 5% above 2023. (Rightmove)
"The latest figures suggest the market is continuing to find a more sustainable balance, rather than experiencing a loss of confidence. Buyers remain active but are taking more time to make decisions, meaning realistically priced homes continue to attract strong interest." Nathan Emerson, CEO of Propertymark.
Prices
Over the last 12 months the average sales price in Bristol was £368,949.
33% of sales in the past 12 months were flats, achieving an average sales price of £276,638. Houses achieved an average price of £424,089.
The highest value recorded by the Land Registry over the past 12 months was £2,150,000 for a flat and £3,000,000 for a house.
Demand
While the Middle East conflict has tempered some of the seasonal momentum in the housing market, Bristol's activity remains resilient overall.
Prices and transaction levels are currently softer than typical for this time of year as higher mortgage rates continue to influence buyer affordability. We also note exceptional seasonal influences, including the Bank Holiday, a heatwave during school half term, and the World Cup, which may be contributing to a slower-than-usual May and June.
Looking ahead, market activity is likely to remain measured as the Bank of England maintains current rates and the political landscape both nationally and internationally. That said, we still expect modest but positive UK house price growth of around 1.5% this year.
Lettings update
Over the last 12 months, the average rent achieved for homes let in Bristol was £1,575 per month. This is a +3.5% change on the previous 12 month period.
68% of homes let in the past 12 months were flats, achieving an average rental value of £1,427 per month. Houses achieved an average rent of £1,957 per month. 31% of renters are aged Up to 21.
Properties rented in the last month had been on the market for an average of 19 days which is 18.4% longer than a year ago.
Mortgages
Mortgage rates have remained relatively elevated through spring 2026, reflecting global uncertainty and volatility in funding markets linked in part to the conflict in the Middle East. While the Bank of England has held the base rate at 3.75%, this market volatility continues to feed through into mortgage pricing.
After briefly dipping below 4% earlier in the year, typical fixed rates are now averaging around 5.0-5.6%, increasing monthly costs for new buyers and those re-mortgaging. That said, the market remains competitive, with strong lender activity and a wide range of products available. Innovation is also supporting access, including Lloyds’ new £5,000‑deposit mortgage (c.5.89% fixed), aimed at helping more first‑time buyers onto the ladder.
Encouragingly, rates remain below the peaks seen in previous years and there are signs of stabilisation. Combined with improved housing supply, this is giving buyers more choice and greater negotiating power. While affordability remains key, those with stable incomes and a longer‑term outlook continue to find opportunities in a market that is gradually regaining confidence.
Property market outlook
Market outlook for 2026: a more balanced market for buyers
As 2026 progresses, market conditions are becoming more favourable for buyers. Expectations are for steady, manageable growth, supported by improved choice and a market that rewards well‑prepared buyers who understand local values and act decisively when the right property comes along.
We hope that was useful and informative. As always, our teams are here to help, get in touch with any questions about your local property market.
If securing a new mortgage or arranging a re-mortgage is important for you right now, click here to book an online consultation, our mortgage brokers are independent, and their services are free to you.
Finally, if you are (understandably) confused by some of the mixed market reporting, not least by some of the more sensational news reporting each month, click here for some independent insight into how House Price Indexes are compiled.
Sources: Rightmove, Zoopla, On the Market, Dataloft by Price Hubble, Land Registry, ONS National House Price Index, DLUHC.