Three in Five UK Homes Go Unsold as Mortgage Rates Cut Buyer Demand 15%
Updated
Updated · bbc.co.uk · Jun 29
Three in Five UK Homes Go Unsold as Mortgage Rates Cut Buyer Demand 15%
3 articles · Updated · bbc.co.uk · Jun 29
Summary
60% of homes listed since January were still unsold by end-May, Zoopla said, with agreed sales running 7% below a year earlier and declines steeper in Wales and the East Midlands.
Mortgage costs drove much of the slowdown after the average two-year fixed rate jumped from 4.83% in early March to 5.90% on April 12, lifting typical monthly payments by £125.
First-time buyers were hit hardest: London buyers faced a peak £232 monthly increase, and two-thirds of one- and two-bedroom flats listed this year remain unsold.
Rates have since eased to 5.54%, and Zoopla said lower borrowing costs, more homes for sale and sellers willing to negotiate have made conditions better than three months ago.
The weaker demand aligns with Bank of England data showing 56,205 mortgage approvals in May — a 2.5-year low — after Iran-war market turmoil pushed lenders to pull deals and raise rates.