The housing market has been in a summer slowdown, with activity typically expected to pick up from September onwards.
But with house price growth slowing down, mortgage rates rising and ongoing uncertainty over inflation amid the Middle East conflict, the market has become increasingly complex for sellers.
Economic slowdown and geopolitical uncertainty have affected the housing market, and have also forced the Bank of England to keep interest rates on hold in its last five base rate decisions.
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Additionally, high levels of supply in the market mean sellers have to compete more aggressively to get the attention of buyers with a sea of options before them.
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The latest RICS Residential Market Survey shows net new buyer enquiries were down 29% in June, though this is a marginal improvement from the -34% in May.
Amanda Bryden, head of mortgages at Lloyds, stated in the Lloyd’s house price index that while the current market is difficult for sellers, “Looking ahead, we expect the housing market to continue moving at a measured pace. Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor.
“The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving,” she added.
High levels of supply
The property supply was close to a 12-year high in June, according to Rightmove.
This glut of properties for sale has made it a buyer’s market, as those looking to purchase a home have many more options.
With more options, sellers have to work harder to make their property stand out, as around a quarter reduce prices to get a sale, Rightmove’s data shows.
Higher mortgage rates
Mortgage rates have been climbing ever since the Iran war began on 28 February.
The average two-year fixed rate mortgage is 5.63% as of 5 August, according to data from Moneyfacts. That is higher than the 5.51% it was last month, and much higher than the 4.83% it was on 27 February, the day before the Iran war broke out.
This makes it all the more important to price your home competitively.
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 dropped by 1% in July 2026 compared to the same month in 2025.
Colleen Babcock, property expert at Rightmove, said: “Pricing remains critical, and it’s remarkable that nearly three-quarters of homes that have sold so far this year have done so without needing an asking price reduction.”
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 Rightmove's latest HPI, London sellers take an average of 70 days to secure a buyer, compared to just 29 days in Scotland.
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.
