Is now a good time to sell a house?

Buyer demand is expected to return to the housing market in 2026 but homeowners may have to be more realistic about the price they sell their home for.

Lower mortgage rates are bringing homebuyers back to the market after a tough 2025 that saw rising stamp duty costs and uncertainty about tax hikes in the Autumn Budget.

But house price growth has slowed and with a glut of homes on the market, it may get tougher to sell a property if you are hoping for a major profit.

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Average property prices fell to their lowest level since the summer at the end of 2025, according to the latest Halifax House Price Index

House prices dropped by 0.6% between November and December, from £299,544 to £297,755.

Estate agents and other property commentators have blamed Budget uncertainty for a drop-off in activity in the final months of the year.

But with the Budget out the way and interest rates cut in December 2025, there is expected to be plenty of buyer demand, especially if mortgage pricing drops further.

This could leave you wondering whether now is a good time to buy or sell a house.

High levels of supply

It is a tough time to sell a property at the moment due to high levels of property supply for sale on the market.

The latest Zoopla House Price Index for December 2025 showed that there were 5% more homes in the market at the end of the year.

This has made it a buyers’ market, so homeowners need to be more flexible on pricing to attract interest amid high levels of competition.

Buyers are also struggling with higher stamp duty costs since the property tax thresholds dropped in April 2025, which is hitting their budgets.

Lower mortgage rates

Demand is expected to be boosted by the falling cost of borrowing.

Interest rates were cut in December 2025 to 3.75% and further reductions are expected in 2026.

This could help boost buyer demand if mortgage rates drop.

There are already signs of this happening.

Moneyfacts data shows average mortgage rates have finally fallen back below 5%, with a typical two-year fix at 4.80% and a five-year deal at 4.89%.

This could be good news for homeowners looking to sell their property, but you still need to ensure your home is priced competitively.

House price hopes v 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 as well as the challenges of high inflation.

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 appear to be taking note. The latest Rightmove House Price Index shows average asking prices at the end of 2025 were 0.6% lower annually.

Setting the right asking price from the start is important, as homes where the price has been slashed take 2.4 times longer to sell on average, Zoopla claims.

These pressures mean homeowners in some regions have even ended up selling for less than they purchased their property.

Research by Hamptons shows that 14.8% of Londoners in 2025 sold their home for less than they bought it for.

This was the highest proportion in England & Wales and above the national average of 8.7%.

Aneisha Beveridge, head of research at Hamptons, said: “The recent slowdown in house price growth nationally is likely to reduce the uplift homeowners achieve when they come to sell in the coming years.

“But for many, moving remains a discretionary decision, heavily influenced by the value they can achieve. If the numbers don’t stack up – and sellers risk losing part of their original deposit – many choose to stay put. This means some homeowners, particularly those unable to secure a gain, are likely to remain out of the market.”

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.

Rightmove research shows it took at an average of 70 days to find a buyer nationally in December, rising to 78 in London.

This is having a knock-on effect on house prices, with the north of the country experiencing more rapid growth than the south. This is apparent in the latest figures from Halifax.

Average prices were up 7.5% annually in Northern Ireland, while Scotland saw growth of 3.9% over the same time period.

Wales saw prices rise by 1.6% over the year while in England, the north east was the region that had the highest annual growth, with average prices increasing by 3.5% to £181,798.

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.

“We’re finding that well-presented, competitively-priced homes are still attracting strong interest,” said Matt Giggs, founder of The Giggs Group, an estate agency firm in Cambridgeshire.

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.

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.

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.