Three in Five UK Homes Listed Since January Remain Unsold

Three in five homes listed for sale since January remain on the market, according to property portal Zoopla. High mortgage rates have reduced buyer demand, leaving some properties unsold. Agreed sales through the end of May were 7% below the same period last year. The decline varied by region, with sales down 12% in Wales and 11% in the East Midlands.

The average two-year fixed mortgage rate rose from 4.83% at the start of March to a peak of 5.90% on 12 April. It has since fallen to 5.54%. Mortgage approvals for house purchases fell to a two-and-a-half-year low in May, the Bank of England said. First-time buyers, who face the largest cost increases, have been most affected.

In the north east of England, first-time buyer mortgage costs rose by only £66 a month over the same period. Northern England and Scotland recorded smaller drops in agreed sales. Two-thirds of one- and two-bedroom flats listed this year remain unsold.

Sales of two- and three-bedroom homes have shown little change. Estate agents reported that homes for sale exceed demand across various price ranges. Sales are taking longer and generating less buyer commitment, one north London agent said. Richard Donnell, executive director at Zoopla, said recent rate cuts and greater choice of homes are creating more favourable conditions for buyers ready to move.