LONDON — Three out of every five homes listed for sale in the UK since January remain stuck on the market, as volatile mortgage rates and stubbornly high asking prices create a massive bottleneck for potential buyers.
According to a new report from property portal Zoopla, overall agreed sales have dropped 7% compared to last year. First-time buyers are feeling the most intense pressure, largely priced out of the market by a sudden, severe spike in borrowing costs this spring.
The April Catalyst: Geopolitical Shockwaves
The current market stagnation can be traced directly back to April. Financial upheaval triggered by the US-Israeli conflict with Iran sent shockwaves through the UK lending market.
According to financial information service Moneyfacts, the average two-year fixed mortgage rate surged from a manageable 4.83% in early March to a steep peak of 5.90% by April 12.