Half of the UK's property markets are now taking longer to sell homes than they did a year ago, according to new data from Zoopla. The national average time to sell has remained at 42 days year-on-year, but that figure masks a growing divergence between fast-moving and sluggish local markets.
Local market divergence widens across UK
Of 363 local authorities across England, Scotland and Wales, 180 recorded an increase in average days to sell over the past year. Eight areas now require 60 days or more to find a buyer, while 145 markets recorded improvements over the same period.
Zoopla attributed some of the slowdown to elevated mortgage rates relative to the start of the year, which it said had increased buying costs and encouraged a wait-and-see approach among prospective purchasers.
Experts point to mortgage rate impact
Richard Donnell, executive director at Zoopla, said the national stability is masking a real divide between local markets. "While the national time to sell has barely moved, that stability is masking a real divide opening up between local markets," he said.
"In areas like Melton in Leicestershire, homes are taking noticeably longer to sell than a year ago, while markets just a short drive away are speeding up." Donnell advised sellers in slower markets to avoid a wait-and-see approach and instead consult local agents who understand street-by-street conditions.
Sellers urged to price right from day one
Donnell emphasised that pricing remains the biggest factor within a seller's control. "If you're selling in a slower market, don't take a wait-and-see approach – talk to a local agent who knows what's happening street by street, and make sure your home is priced right from day one," he said. "That's still the biggest factor within a seller's control, whatever the local market is doing."
David Hollingworth, associate director at L&C Mortgages, told Mortgage Introducer that borrowers are struggling to make informed decisions in an environment where too many variables remain unresolved. "I think some stability would be a massive help, and until we get that, it will be very hard for customers to see the wood for the trees," he said.
Hollingworth added that predicting interest rate movements remains difficult without a prolonged period of stability and a more settled geopolitical situation. "You can't really predict what may or may not happen to interest rates until we get a more prolonged period of stability and that geopolitical situation looks to be more settled, which we're far from at the moment," he concluded.
