If you’ve been following the property headlines this autumn, you’ll know the biggest story isn’t house prices. It’s mortgage rates. A year that began with lenders competing on sub-4% deals has turned sharply, and that shift is now feeding straight into what buyers can afford and what they’re willing to pay. For anyone planning to sell, it changes the rules of the game, and the most important decision you’ll make is your asking price.
What has happened to mortgage rates?
At the start of March, the average two-year fixed rate was 4.84% and the average five-year fix was 4.96%, according to Moneyfacts. By 5 October those figures had climbed to 5.98% and 6.00%, the highest in around three years. The trigger has been the conflict in the Middle East, which has pushed up oil and gas prices, lifted UK inflation to 3.1% and led markets to expect the Bank of England’s next move to be a rise rather than a cut.
The speed of the change has been remarkable. Moneyfacts counted just nine fixed-rate mortgages priced below 5% on 5 October, down from almost 1,500 at the start of September. Deals are also being withdrawn or repriced within days, so a buyer who was agreed in principle earlier in the year may now find their budget has shrunk.
How is that affecting buyers?
Rightmove’s October report shows the number of new buyers contacting agents is 9% lower than a year ago, while new listings are up 3%. The total number of homes for sale is at its highest level for this time of year since 2014. Zoopla paints a similar picture, with 5% more homes on the market and sales agreed running 9% below last year.
In practical terms, buyers have more choice and less borrowing power at the same time. Zoopla estimates households can now borrow around 9% less than at the start of 2026. That combination makes buyers more selective, and more sensitive to price, than at any point in the last few years.
What’s happening to prices?
Prices haven’t collapsed, but they have stalled. Nationwide reported a 0.2% monthly fall in September, taking the average to £274,251, its fourth drop in five months. The Lloyds House Price Index showed prices flat in September at £298,441, with annual growth at 0%. Rightmove’s average asking price rose 1% in October, a normal autumn bounce, but at £371,015 it is still marginally below where it was a year ago.
Local differences matter. Rightmove found new-seller asking prices fell this month in the North East, Scotland, the North West and Wales, an early sign that higher mortgage costs are now reaching the more affordable parts of the country that had held up well earlier in the year.
The cost of getting the price wrong
Perhaps the most telling figure this autumn comes from Zoopla: around a quarter of homes newly listed had been on the market before, and six in ten of those returned at a lower price. In other words, many sellers are learning the hard way that an ambitious starting price doesn’t leave room to negotiate. It simply leaves a home sitting unsold while buyers look elsewhere.
A property that lingers on the portals tends to attract fewer viewings over time, and when the price finally comes down, buyers often assume something is wrong with it. The first few weeks of marketing are when
interest is at its peak, and that’s the window you want to make count.
Five ways to sell successfully in a price-sensitive market
Price for today’s buyer, not last spring’s. Ask your agent for recent sold prices of comparable homes nearby, not just asking prices. Sold data shows what buyers have actually been prepared to pay.
Think about the monthly payment. Buyers are working backwards from what they can afford each month. A price that sits just under a key search threshold, such as £250,000 or £300,000, can put your home in front of far more people.
Make a strong first impression. With so much choice, your listing has seconds to stand out. Professional photography, a clear floorplan and a decluttered, well-lit home all help.
Look beyond the headline offer. A buyer with a mortgage agreed in principle, a solid deposit and no chain may be worth more to you than a slightly higher offer from someone whose finances could unravel if rates move again.
Be ready to move quickly. Gather your ID, property information forms and any certificates or warranties before you go live. With mortgage offers being repriced so often, a quick, smooth sale protects both you and your buyer.
The bottom line
This isn’t a market where homes don’t sell. Zoopla still expects around 1.1 million sales to complete across 2026. But it is a market that rewards realism. Sellers who price competitively from day one, present their home well and choose their buyer carefully are still achieving good results.
Thinking about selling? Speak to your local branch for a free, no-obligation valuation based on what’s actually selling in your area right now.
