Half of homes across Great Britain are taking longer to sell than last year, according to a report by property platform Zoopla. Volatile conditions in the mortgage market, linked to the ongoing Iran conflict, are prompting buyers to delay purchases in anticipation of better deals.
The report indicates that homes in 180 out of 363 local authorities in England, Scotland, and Wales are experiencing longer selling times compared to a year ago. While the national average time to sell a home remains 42 days, a significant regional divide is emerging.
Property hotspots are seeing buyers complete deals quickly, while uncertainty over mortgage costs is leading to a more cautious approach elsewhere. The 10 fastest-selling markets in the UK are all located in Scotland, with Falkirk recording the lowest average selling time at 11 days. Carlisle and Barnsley in England are the fastest non-Scottish markets, both at 23 days.
Conversely, eight local authorities have an average selling time of two months or more, including Melton in the East Midlands at 76 days, Westminster in London, and Teignbridge in the south-west.
The Iran conflict is reported to have rattled financial markets, impacting the pricing of home loans. Moneyfacts data shows the rate on an average two-year fixed residential mortgage was 5.61% on Monday, an increase from 4.83% before the conflict began in late February. The rate reached nearly 6% in April.
Official figures expected on Wednesday are anticipated to show UK inflation rose from 2.6% in June to 2.9% in July due to soaring energy costs, potentially increasing expectations for the Bank of England to raise interest rates. However, separate figures due on Tuesday are expected to indicate a slowdown in the jobs market, which could influence the Bank's decision.