Half of homes in Great Britain taking longer to sell than last year amid mortgage volatility

Homes in 180 of 363 local authorities across England, Scotland and Wales are taking longer to sell than a year ago, according to property platform Zoopla. The national average remains 42 days, but a widening regional divide is emerging: buyers in hotspots are completing quickly, while mortgage uncertainty is prompting caution elsewhere. Scotland accounts for all 10 of the UK’s fastest-selling markets. Falkirk leads at 11 days, while Carlisle and Barnsley are the fastest non-Scottish markets, at 23 days each. At the other end, eight local authorities average at least two months to sell. Melton in the East Midlands leads at 76 days, followed by Westminster in London and Teignbridge in the south-west. The divergence suggests national averages may conceal materially different conditions for housing-market investors, with local liquidity affecting transaction volumes, pricing power and valuations. Mortgage markets have remained volatile as the stop-start Iran war rattles financial markets. Many lenders withdrew deals in March, while fears that the conflict would revive global inflation and prompt Bank of England rate increases pushed borrowing costs higher. Moneyfacts data shows the average two-year fixed residential mortgage rate stood at 5.61% on Monday, up from 4.83% before the conflict began at the end of February. The rate approached 6% in April. The outlook remains uncertain. Official figures due Wednesday are expected to show energy costs lifting UK inflation from 2.6% in June to 2.9% in July, increasing expectations of higher borrowing costs. Separate figures due Tuesday are expected to show a weaker jobs market, potentially encouraging the Bank to delay action. Financial markets anticipate two quarter-point increases in the Bank’s base rate, currently 3.75%, before the end of next year. That trajectory could further influence affordability, transaction volumes and property valuations. Richard Donnell, Zoopla’s executive director, said stable national selling times were “masking a real divide opening up between local markets.”