Mortgage volatility slows UK home sales
Half of UK homes now take longer to sell as mortgage rates rise amid the Iran war, Zoopla reports.
Zoopla has found that 50 per cent of homes in Great Britain are taking longer to sell than a year ago, a slowdown driven by volatile mortgage conditions linked to the Iran war.
The property platform analysed 363 local authorities across England, Scotland and Wales. While the national average time to sell remains at 42 days, the report highlights a widening regional gap.
Regional sales disparity
The fastest-selling markets are all in Scotland. Falkirk tops the list with an average of just 11 days to sell, followed by Carlisle and Barnsley in England at 23 days each. In contrast, eight authorities now average two months or more on the market. Melton in the East Midlands leads this group with 76 days, while Westminster in London and Teignbridge in the south-west also exceed the two-month mark.
| Market | Avg. days to sell |
|---|---|
| Falkirk | 11 |
| Carlisle | 23 |
| Barnsley | 23 |
| Melton | 76 |
| Westminster | 76 |
| Teignbridge | 76 |
Richard Donnell, Zoopla’s executive director, said: "While the national time to sell has barely moved, that stability is masking a real divide opening up between local markets."
Mortgage rates rise amid conflict
The Iran war has triggered months of heightened volatility in the mortgage market. Many lenders pulled deals in March, and the cost of a typical home loan has surged. Moneyfacts data shows the average two-year fixed residential mortgage rate stood at 5.61% on Monday, compared with 4.83% before the conflict began at the end of February. The rate peaked near 6% in April.
| Rate | Timing |
|---|---|
| 4.83% | Before conflict (end of Feb) |
| 5.61% | Current (Monday) |
| ~6% | Peak (April) |
The Bank of England’s base rate is currently 3.75%, with markets expecting two quarter-point increases before the end of next year. Official figures due later this week will show energy costs pushing UK inflation from 2.6% in June to 2.9% in July, potentially prompting further rate hikes.
Market outlook
Buyers are adopting a "wait and see" approach, hoping to secure better mortgage deals as the conflict unfolds. The uncertainty over future interest rates has made many hesitant to commit to a purchase. Meanwhile, property hotspots continue to race to complete deals, keeping the fastest markets tight.
The Guardian reports that the war in the Middle East has rattled financial markets, leading to the pullback of mortgage deals and a spike in loan costs. As the situation evolves, buyers and sellers alike are watching the Bank of England’s actions closely, aware that any change could shift the balance of the market once again.
