It’s no secret that financial times are tough for so many at the moment, and the property market is starting to show the impact of this. Figures released in early September 2026 showed that the average price of a house in the UK has fallen. Compared to a year ago, prices have dropped by 0.4%, which is the first year-on-year decrease since November 2023*.
There is a lot of global economic uncertainty right now that has had a knock-on effect on borrowing and what people can afford to buy, as they are waiting to see how conditions pan out. On top of this, homeowners are also reluctant to accept lower offers, which means there are fewer homes changing hands, and moves to upsize or downsize are becoming tricky. So, why is selling a house so difficult right now? Our team digs into some of the possible reasons for this.Â
People Have Less Money To Spend
With the cost of basic living increasing, people just don’t have the spare money to save for or spend on buying a house. Mortgage approval figures back this as they are at the lowest they’ve been since the start of 2024*. Those who are successful in getting a foot on the property ladder often have to stretch their affordability to do so.Â
Although house prices have dropped, they are still high in relation to incomes, which means there’s less buyer demand and lower offers made by those who are in the market to buy. At the end of the day, a house is only worth what the buyer is willing to pay. This can cause problems for home movers who are relying on the sale of a property to buy a new one, as it creates stagnation in the market as people are stuck until a buyer comes along. It can also put people off from buying houses that need a lot of work done to them, as this can become expensive quickly.Â
High Mortgage RatesÂ
Mortgage rates are also putting people off from buying houses. The average two-year fixed rate is 5.50%, and the average five-year fixed rate is 5.47% as of September 2026*. High interest rates are thought to be a direct impact of the current war in the Middle East and wider global economic uncertainty.
This is important because even a small increase in mortgage rates can stretch homebuyer affordability to the max, impacting what people can afford to repay each month. This is particularly off-putting for first-time buyers.Â
Buying and Selling A House Is ExpensiveÂ
Buying and selling a house is expensive. As well as the actual deposit and mortgage itself, there are lots of other costs to think about. From solicitor and survey fees to stamp duty, you need to make room for a lot in your budget.Â
Stamp Duty Land Tax (SDLT), in particular, makes it even more expensive for those who are looking to move house. First-time buyers don’t pay stamp duty on properties up to the value of ÂŁ300,000. For other buyers, it’s a bit different as the tax rates change as the value of the property goes up.Â
Here’s an example:Â
If you buy a house for £295,000, the total SDLT you will owe will be £4,750, as you’ll pay 0% on the first £125,000, 2% on the second £125,000, which will be £2,500, and 5% on the last £45,000, which will be £2,250.
Read more in our stamp duty guide. It’s easy to see how stamp duty is another stumbling block for buyers and sellers when it comes to moving houses.Â
Buying a House Is Still A Solid Long-Term InvestmentÂ
Despite the market not being appealing to buyers right now, buying a property is still a reliable long-term investment. While renting may be tempting, it is actually more worthwhile to get a step on the property ladder if you can, as mortgage repayments are usually similar to rent costs and you’re chipping away at paying for something that you will own outright and that will increase in value in the end. It’s important to remember that any short-term fluctuations do always tend to balance out.Â
If you’re looking to buy your first house, upsize, or downsize, our team is ready to help you discuss your options.Â
*https://www.rightmove.co.uk/news/articles/property-news/current-uk-mortgage-rates/
