Is now a good time to sell a house?
The latest Middle East conflict may dampen demand in the housing market, making it crucial for sellers to be realistic about asking prices to attract interest
Sam Walker
High levels of property supply and concerns about the impact of the Iran war may make it harder to sell in 2026.
The year had started on a positive note for homeowners looking to sell a property.
House prices hit record highs in January as the market adapted to higher stamp duty and recovered from the uncertainty of the 2025 Autumn Budget.
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Lower mortgage rates also saw homebuyers return to the market.
But house price growth has slowed in recent months and with record numbers of homes on sale it could get tougher to sell up and make a major profit.
Tensions between the US and Israel and Iran have also caused concern in the financial markets, pushing average mortgage rates over 5%.
This has already started feeding into the housing market, with the latest RICS Residential Market Survey showing buyer demand is down.
This could leave you wondering whether now is a good time to buy or sell a house.
High levels of supply
Property website Rightmove says the number of homes for sale is at its highest level since 2015, with almost a third of properties listed for sale seeing prices reduced.
This has made it a buyers’ market, so homeowners need to be more flexible on pricing to attract interest amid high levels of competition.
Some buyers are also struggling with higher stamp duty costs since the property tax thresholds dropped in April 2025.
Higher mortgage rates
Interest rates had been steadily falling in 2025 to 3.75%, with hopes they would continue to drop in 2026. However, the possible inflationary impact of tensions in the Middle East have put these hopes on ice, for now.
Moneyfacts data shows the average two-year fix (as of 1 June) is 5.68%, well above the 4.83% seen on 27 February.
This makes it all the more important to price your home competitively.
Mortgage rates could drop later on in the year, although this is largely dependent on whether negotiations between the US, Israel and Iran find a resolution.
House price hopes vs reality
Even if demand rises, mortgage rates are still higher than many will have been used to five years ago and homebuyers are facing higher property taxes.
This means sellers need to be realistic about the price they will get as the days of double digit house price growth appear to be over.
Sellers seem to be taking note. The latest Rightmove House Price Index (HPI) shows average asking prices were 0.3% lower in May 2026 compared to the same month in 2025.
Setting the right asking price from the start is important, as homes that didn’t need a price reduction sold in 36 days compared to 127 days for those that needed a reduction, Rightmove found.
Recent analysis from Zoopla also found almost half of UK homes listed for sale in the past three years didn’t sell, in part because many sellers failed to price them accurately.
Is the housing market slow at the moment?
The speed of the housing market depends on where you are in the UK. Sellers in London and the south east may have a tougher time selling a property than those in the north due to differences in affordability and house price growth over time.
For example, according to Zoopla’s latest HPI, London homes are taking six days longer to find a buyer compared to a year ago.
Is now a good time to sell a house?
The answer to this question depends on your personal circumstances as well as the state of the property market. You might need to move for work, or could require a larger house for a growing family. In cases like these, timing the market perfectly isn’t always practical.
Competition to secure a buyer is high, but there are steps sellers can take to make their home more sellable. As well as getting the price right, presenting your home in the most attractive light is important.
Mark Manning, managing director of Northern Estate Agencies Group, said: “Think carefully about how your property is presented both online and at the kerb – first impressions really do still matter.”
While house price growth in some regions is slow, it is worth remembering that prices are still hovering around record highs. Even if house price growth slows from here, a weaker market might not matter too much if you are buying and selling at the same time. Although you might get a less attractive offer for your current property, you will be able to drive a harder bargain on the home you are purchasing.
Tax changes in the 2025 Autumn Budget may also have an impact on how easy it is to sell your home. The major change affects high-end homeowners as a mansion tax is due to be introduced in April 2028 on homes worth £2 million and above. This could reduce demand for prime properties as buyers may not want the extra tax bill.
What month is best to sell in?
Typically, but not always, there are some months which are better to sell in than others due to market conditions.
Rightmove claims March and April are two of the best months to sell a home, when buyer demand is high. The property website also said early in the calendar year is a popular time for buyers to hit the market, fresh after the Christmas season.
September through to November can be good times to put your home up for sale as well, when people are back from summer holidays and ready to start a property search.
Best time to downsize or upsize
When deciding when to buy or sell a house, you should also factor in the type of move you are making. For example, are you taking a step up the property ladder or downsizing as you approach retirement?
The best time to downsize is generally when property prices are on the rise. If the home you are selling and the property you are buying have both increased in value by 5%, but the home you are selling is worth more, you are likely to profit from the move.
For those who are stepping up and buying a more expensive home, rising property prices make the transaction more expensive.
It is worth pointing out that house prices perform very differently in different parts of the UK, so you may find that prices have not changed in the same way in both your local area and where you would like to move to.
For example, the average property price in the south east of England fell from £381,515 in March 2025 to £378,515 in March 2026, whereas in Northern Ireland the average house price rose from £184,322 to £198,015 over the same period.
Finally, if you are thinking of selling, you should also consider the costs involved. This can include estate agent fees, legal fees, stamp duty, and capital gains tax in the case of second homes.
If you are selling because you would like to free up some money, you should weigh up whether it is still worth it after the costs.
