Why Half of UK Homes Still Don’t Sell — Despite a Market Rebound

Here’s a twist in the UK housing saga: the market is buzzing with activity—residential sales have jumped 14% compared to pre-Covid times, signaling a strong appetite among buyers. But hold on, not everything is rosy. Around half of the homes listed still walk away from the market without a sale. What’s going on here?

The culprit? Overvaluation. Sellers pinning sky-high price tags on their homes are effectively shutting the door on a timely sale. While demand is clearly there, pricing disconnects mean buyers often click away, leaving properties to linger. It’s a stark reminder that enthusiasm alone won’t close deals if the figures don’t add up.

The bounce-back in sales might seem like a sign of green shoots after a clouded few years, but it’s a bumpy ride underneath. The market is playing a game of patience and precision. Some sellers are still clinging to outdated valuations from the market frenzy, ignoring the subtle shifts that have happened since. This mismatch is fragmenting the market, splitting eager buyers and hesitant sellers into separate camps.

Meanwhile, the mortgage world is getting friendlier, with borrowing costs falling to their lowest levels in two years, which fuels buyer optimism. Add to that stronger estate agency turnovers thanks to expanded services, and you’ve got the engines revving. Yet, the catch remains—buyers won’t bite if prices are stubbornly out of sync with reality.

Practical Takeaways for Buyers:

• Don’t let sticker shock scare you off. Half the homes on the market are overpriced. Use this to your advantage by pushing for fair value and walking away when sellers won’t budge.
• Keep a close eye on mortgage rates—they’re trending down, making borrowing cheaper and boosting your buying power if you time it right.
• Work with savvy agents who understand local market nuances and can flag which listings are realistic and which are priced to frustrate.
• Be ready to move fast when you find a well-priced property. The pool of homes that genuinely represent value is tighter than the overall buzz suggests.

The Final Takeaway:

The UK housing market is humming but tricky. It’s not just about buyer demand or low rates—it’s about price discipline. Sellers who get it right will thrive. Buyers who stay patient and strategic will find their opportunity. For everyone else, the market’s current paradox remains: plenty of action, but not necessarily a sale on the horizon.