Key facts
- Half of homes in Great Britain are taking longer to sell compared to last year.
- Homes in 180 out of 363 local authorities in England, Scotland, and Wales are experiencing longer selling times.
- The national average time to sell a home remains 42 days, but regional differences are significant.
- Scotland hosts the 10 fastest-selling property markets, with Falkirk averaging 11 days.
- The average rate for a two-year fixed residential mortgage is 5.61%, up from 4.83% before the Middle East conflict.
- UK inflation is forecast to rise to 2.9% in July, potentially leading to further interest rate hikes.
Half of homes in Great Britain are taking longer to sell than a year ago, a situation exacerbated by volatile mortgage market conditions linked to the ongoing Middle East conflict. According to property platform Zoopla, homes in 180 out of 363 local authorities are experiencing extended selling times.
While the national average time to sell a home has remained stable at 42 days, significant regional disparities have emerged. Buyers in property hotspots are still completing deals quickly, but uncertainty over mortgage costs has led to a more cautious approach in other areas.
The report identified Scotland as having the 10 fastest-selling markets, with Falkirk leading at an average of 11 days. Carlisle and Barnsley in England were the fastest non-Scottish markets at 23 days each. Conversely, eight local authorities reported average selling times of two months or more, including Melton (76 days), Westminster, and Teignbridge.
Buyers seeking mortgages have faced considerable volatility, with lenders pulling deals in March and typical home loan costs soaring due to fears of renewed global inflation and potential interest rate hikes by the Bank of England. The average rate for a two-year fixed residential mortgage stood at 5.61% on Monday, a notable increase from 4.83% before the conflict began in late February. Rates peaked near 6% in April.
Official figures are expected to show that soaring energy costs pushed UK inflation from 2.6% in June to 2.9% in July, increasing expectations for a Bank of England rate increase. However, a potential slowdown in the jobs market could lead the bank to delay action. Financial markets are anticipating two quarter-point increases in the base rate from its current level of 3.75% before the end of next year.
Richard Donnell, an executive director at Zoopla, noted that the national stability masks a significant divide opening up between local property markets.