Homes harder to sell as high mortgage rates frustrate buyers
Summary
Many homes listed for sale since January are still unsold because mortgage rates are high, which makes buyers hesitant. This has caused home sales to drop, especially for smaller flats and first-time buyers, but mortgage rates have recently started to fall, giving hope to buyers.Key Facts
- About 60% of homes listed since January remain unsold.
- Home sales are 7% lower than last year, with bigger drops in some areas like Wales (12%) and the East Midlands (11%).
- Higher mortgage rates, which increased in April due to global events, raised monthly payments by around £125 on average.
- First-time buyers in London saw mortgage costs rise by £232 a month at the peak.
- Mortgage rates jumped from 4.83% in early March to 5.90% in April, then fell to 5.54%.
- The increase in mortgage rates led to a 15% fall in buyer demand across the UK.
- Two-thirds of smaller flats (one or two bedrooms) listed this year remain unsold.
- Recently, lenders have started lowering mortgage rates, which is helping buyers and encouraging sellers to negotiate prices.
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