High Mortgage Rates Leave Three in Five UK Homes Unsold Since January, Zoopla Reports
Estate agents across the UK are contending with a sluggish housing market, as new data from property portal Zoopla reveals that three in five homes listed for sale since January remain unsold. This protracted market activity is largely attributed to the sustained high cost of mortgage borrowing, which is deterring potential buyers.
Zoopla's analysis indicates that the average time a property spends on the market has lengthened, with a notable increase in price reductions. Approximately 42% of homes currently listed have undergone a price cut of at least 5% from their initial asking figure. This trend underscores a disconnect between seller expectations and buyer affordability in the current economic climate.
The impact of higher mortgage rates is particularly pronounced in the South East of England and London, where a larger proportion of properties are struggling to find buyers. These regions, traditionally characterised by higher property values, are now experiencing the most significant slowdowns as borrowing costs exert greater pressure on household budgets.
This market behaviour reflects a broader economic reality where the Bank of England's efforts to control inflation through interest rate hikes have directly translated into higher mortgage repayments. Consequently, fewer prospective homeowners are entering the market, leading to reduced transaction volumes and a backlog of available properties.
