A significant proportion of UK homeowners who had initially planned to sell their properties in 2026 have now decided against it, with almost a quarter abandoning their intentions. This shift, revealed by a recent survey, highlights growing uncertainty among property owners and could have broader implications for the nation's housing market.
The survey, commissioned by GetAgent and involving 1,011 UK homeowners, found that 24% of those who had set out with the intention to list their property this year have now shelved those plans. This represents a substantial number of potential listings being withdrawn from the market, potentially impacting the supply of homes available for sale across various regions.
This reluctance to sell comes at a time when the housing market is navigating a complex landscape. While some recent data has shown signs of stability or even modest growth in house prices, the overarching economic climate, including the trajectory of inflation and interest rates, continues to create a cautious environment for both buyers and sellers. For instance, Rightmove reported in March that average asking prices saw a slight month-on-month increase of 0.8% across Great Britain, reaching £368,118. However, annual growth remained subdued at 0.9%, indicating a market that is far from surging.
The decision by a quarter of prospective sellers to hold off could exacerbate the long-standing issue of housing stock shortages. A reduced number of available properties on the market typically puts upward pressure on prices, making it more challenging for first-time buyers to enter homeownership. Existing homeowners who planned to 'trade up' or downsize might also find fewer suitable options, or face increased competition for desirable homes.
Mortgage rates, while having eased from their 2023 peaks, remain a significant factor. The average two-year fixed mortgage rate currently hovers around 5.8%, according to Moneyfacts data from March, a stark contrast to the sub-2% rates seen just a few years ago. This higher cost of borrowing can deter potential movers, as it directly impacts affordability and the size of loans available. For landlords, the current environment presents a different set of challenges, with increased mortgage costs potentially squeezing rental yields and influencing decisions on whether to expand or divest portfolios.
The implications for first-time buyers are particularly pertinent. A reduced supply of properties, coupled with still-elevated house prices and higher mortgage rates, creates a formidable barrier. Government schemes like Help to Buy, which concluded for new applications in October 2022, provided vital support for many, and its absence is felt. While the Stamp Duty Land Tax threshold for first-time buyers offers some relief on properties up to £425,000, the overall market conditions mean that affordability remains a primary concern for those looking to get onto the property ladder.
Source: GetAgent