Three out of every five homes put up for sale at the start of 2026 were still on the market by the end of June, according to new property data that suggests Britain’s housing market is losing momentum amid higher borrowing costs, economic uncertainty and political upheaval.
Analysis from property portal Zoopla found that around 60 per cent of homes listed for sale in January had yet to secure a buyer by June.
The figures come as sales agreed during the four weeks to 21 June were running seven per cent lower than during the same period last year, while buyer demand has fallen by around 15 per cent year-on-year.
The slowdown marks a significant change from the more optimistic start to the year, when falling mortgage rates had encouraged more buyers back into the market. However, mortgage costs rose sharply during the spring, with average rates reaching around five per cent in April before easing slightly. Zoopla estimates that monthly mortgage repayments on a typical new loan are now substantially higher than they were at the beginning of the year.
The latest figures suggest flats are proving particularly difficult to sell. One and two-bedroom apartments, which are often purchased by first-time buyers, remain the weakest-performing sector, with around two-thirds still unsold after being listed since January. House price growth for flats has also fallen into negative territory nationally.
Regional differences remain stark. Wales recorded the largest annual decline in agreed sales, down 12 per cent, followed by the Midlands at 11 per cent and the East of England at 10 per cent. Meanwhile, parts of northern England and Scotland continue to outperform southern regions, reflecting stronger affordability and tighter housing supply.
Industry experts have pointed to a combination of economic and political factors behind the weaker market. Alongside rising mortgage rates and political uncertainty has added to buyer caution. Questions over future tax policy, housing reforms and the contents of the next Budget have encouraged many prospective purchasers to adopt a wait-and-see approach.
The wider housing market is also facing other pressures. The end of more generous stamp duty thresholds for first-time buyers, ongoing concerns about leasehold costs and service charges, and continuing affordability challenges have all weighed on demand. Bank of England figures show mortgage approvals have fallen to their lowest level since late 2023, underlining the more subdued mood among buyers.
Despite the slowdown, house prices have not collapsed. Zoopla’s latest data shows the average UK home is worth around £272,000, approximately 1.4 to 1.5 per cent higher than a year ago. However, growth has slowed significantly and remains uneven across the country, with London and parts of the South East continuing to see flat or falling prices while northern regions record stronger gains.
Recent figures from Rightmove also point to a cooling market. Asking prices fell by 0.6 per cent in June, the largest monthly June decline recorded in 14 years, as sellers adjusted expectations in response to increased competition and weaker buyer demand.
Property analysts say correctly priced homes continue to sell, but buyers now have more choice than at any point in recent years. With political uncertainty, tax speculation and mortgage affordability all remaining key concerns, many expect the housing market to remain subdued through the second half of 2026 unless borrowing costs fall further and confidence returns.
