Half of homes across Great Britain are taking longer to sell than a year ago as mortgage-market volatility and uncertainty over borrowing costs prompt buyers to adopt a “wait and see” approach, according to property platform Zoopla.Homes in 180 of 363 local authorities across England, Scotland and Wales are taking longer to sell compared with last year, the report found, as cited by The Guardian. The national average time to sell, however, remains unchanged at 42 days.The widening gap between local housing markets comes as volatility in mortgage rates continues to affect buyer sentiment. The Iran war has rattled financial markets and raised concerns over renewed inflation, putting pressure on the pricing of home loans.Several lenders pulled mortgage deals in March, while borrowing costs rose amid expectations that higher energy prices could push inflation higher and force the Bank of England to raise interest rates.The average rate on a two-year fixed residential mortgage stood at 5.61% on Monday, according to financial data provider Moneyfacts, up from 4.83% before the conflict began at the end of February. The rate peaked at nearly 6% in April.The uncertainty has encouraged some buyers to delay purchases in the hope of securing cheaper mortgage deals, while buyers in more sought-after markets have continued to move quickly.“While the national time to sell has barely moved, that stability is masking a real divide opening up between local markets,” said Richard Donnell, executive director at Zoopla.
Scotland leads fastest-selling markets
All 10 of Great Britain’s fastest-selling markets were in Scotland, with homes in Falkirk taking an average of just 11 days to sell. Carlisle and Barnsley were the fastest-selling markets outside Scotland, at 23 days each.At the other end, eight local authorities recorded an average selling time of at least two months. Melton in the East Midlands was the slowest, at 76 days, followed by Westminster in London and Teignbridge in south-west England.The housing market could face further pressure from interest-rate uncertainty. UK inflation is expected to have risen from 2.6% in June to 2.9% in July, driven partly by higher energy costs, while financial markets expect two quarter-point increases in the Bank of England’s base rate, currently at 3.75%, before the end of next year.