60% of Homes Are Still Unsold in 2026: Here’s What It Means For You

Three in five homes listed for sale since January are still sitting unsold, according to the latest Zoopla House Price Index. Sales agreed are down 7% on last year and buyer demand has fallen 15%. Read as a headline, that sounds like a market in trouble.

You can read the full breakdown over at Zoopla, but if you’d rather someone translated it into plain English, that’s what we’re here for.

Why Are So Many Homes Still Unsold?

Mostly rates, and mostly caution. Mortgage rates climbed to an average of 5% in April, adding around £125 a month to a typical mortgage. When borrowing gets more expensive, buyers tend to pause rather than pull out completely.

Political uncertainty has piled on top of that. A new Prime Minister and an unresolved Autumn Budget have given buyers even more reason to sit tight and wait. None of this means people don’t want to move. It means they’re thinking harder before they commit, and that shows up in the figures as homes sitting on the market for longer.

It isn’t even across the country. Wales, the East Midlands and the South West have seen the sharpest slowdowns. Northern England and Scotland are still moving at close to last year’s pace.

Is It Really Just About Rates?

No. Price plays just as big a part. Two and three-bedroom houses are still selling at a pace close to last year’s in most areas. It’s overpriced homes, and flats in particular, that are struggling.

More than two-thirds of one and two-bedroom flats listed this year are still unsold. First-time buyers, who typically buy this type of property, are the most exposed to higher borrowing costs and stamp duty, so it’s this segment feeling the slowdown hardest.

What This Means If You’re Buying

Less competition, more room to negotiate. With buyer demand down and more homes to choose from, sellers are more open to offers than they were a year ago. As we covered in our guide on mortgage affordability, being ready to act when the right property comes up is almost always more valuable than waiting for a slightly better rate that may or may not arrive.

Mortgage rates have also started easing, down to 4.8% in May from that April peak. That won’t last indefinitely. Every rate cut tends to bring more buyers back into the market, and more demand usually means less negotiating room. Being mortgage-ready now is what lets you move while the window is still open.

What This Means If You’re Selling

It’s a pricing conversation, not a waiting game. If a home has been listed a while without offers, the issue is almost always price rather than the wider market. Correctly priced homes are still finding buyers close to last year’s pace. Getting a realistic valuation, based on what buyers can actually afford to borrow right now, will do more for a sale than waiting for conditions to change.

What This Means If Your Mortgage Deal Is Ending Soon

Start looking now, not when your deal expires. If your fixed rate ends in the next few months, your lender will move you onto its standard variable rate automatically unless you arrange something new. We covered why that matters in our piece on standard variable rates, but the short version is that most lenders let you secure a new deal up to six months in advance, and you’re not committed to it if something better comes along before it starts.

So Should You Be Worried About the Housing Market Right Now?

No. But you should be prepared. A quieter market isn’t a broken one. Underlying demand hasn’t disappeared, it’s just taking longer to convert into sales. The buyers and sellers who do well in a market like this are the ones who know their numbers, understand their options, and are ready to move when the moment is right.

Not Sure Where You Stand?

Whether you’re buying for the first time, selling and rethinking your asking price, or your current mortgage deal is coming to an end, a quick conversation costs nothing and could save you a lot. Get in touch with our team and we’ll give you a straight, honest picture of your options.

Frequently Asked Questions

Why are so many homes unsold in 2026?

Higher mortgage rates earlier in the year, combined with political uncertainty around the Autumn Budget, have made buyers more cautious. Overpricing is also a major factor. Correctly priced homes are still selling at close to last year’s pace.

Is it a good time to buy a house right now?

For many buyers, yes. Less competition means more room to negotiate, and rates have started easing from their April peak. Our guide on mortgage affordability explains how to get yourself in the strongest position before you apply.

Should I lower my asking price if my home isn’t selling?

If a property has been on the market a while without offers, price is almost always the reason, not the wider economy. Homes priced accurately for current conditions are still selling. A price that matched the market six months ago may no longer reflect it today.

Will mortgage rates keep falling in 2026?

Nobody knows exactly when or by how much rates will move, not us, not the Bank of England, not the economists. Rates have eased to 4.8% in May from a peak of 5% in April, but further movement depends on inflation and wider economic conditions.

My mortgage deal ends soon. What should I do?

Start the conversation now rather than waiting for your renewal letter. Most lenders let you lock in a new rate up to six months before your current deal ends, and you can usually switch to a cheaper rate if one appears before it starts. Our piece on standard variable rates covers this in more detail.

Should I wait for the market to improve before buying or selling?

Waiting has a cost too. Every month spent waiting is a month either paying someone else’s mortgage instead of your own, or a home sitting unsold while the right buyer moves on to something else. Being prepared, rather than trying to time the market perfectly, is almost always the stronger position.