Mortgage market turbulence slows home sales in half of Great Britain
Around 50% of UK homes are now taking longer to sell than a year ago, as mortgage-rate uncertainty linked to the Iran conflict makes buyers more cautious.
A new Zoopla analysis shows that half of homes in Great Britain are selling more slowly than they did a year earlier, reflecting buyer hesitation amid mortgage-rate turbulence tied to the ongoing Iran war. While the overall average time to sell a property stays at 42 days, the gap between quick-selling hotspots—such as Falkirk in Scotland, where homes move in just 11 days—and slower markets like Melton, Westminster and Teignbridge has grown.
The conflict has caused lenders to pull mortgage offers and driven the average two-year fixed rate to 5.61%, up from 4.83% before the war, with a peak near 6% in April. These conditions are feeding uncertainty about future Bank of England policy, especially as upcoming data may show rising inflation and a cooling jobs market. Financial markets are pricing in two quarter-point base-rate hikes before the end of next year. Zoopla executive director Richard Donnell warned that the stable national average masks a deepening divide between local property markets.
Why it matters
Higher mortgage rates and market uncertainty are slowing home sales, affecting buyers, sellers and the broader UK economy.
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