The housing market in the United Kingdom is experiencing a slowdown as the number of properties that are available for sale has reached its highest seasonal level in more than a decade. Rising mortgage costs, cautious buyers, and uncertainty surrounding upcoming government policies are contributing factors that are helping to weaken the demand and limit price growth.
According to property platform Rightmove, the number of homes listed for sale has reached its highest level for this period of the year since 2014. Average asking prices for newly advertised properties stood at £371,015 in October 2026, and that represents a 0.1% decline compared with the same period last year. Although prices increased by 1% month-on-month, the rise was below the usual seasonal pattern.
Higher borrowing costs are also a reason that is creating additional difficulties for prospective homeowners. Reports have been made that the average two-year fixed mortgage rate has increased to 5.55% in October, when compared with 5.29% previously. Meanwhile, agreed property sales were 8% lower than a year earlier, while new buyer enquiries declined by 9%. These figures suggest that affordability concerns are discouraging some households from proceeding with purchases.
Data published by Zoopla earlier in October supports this trend. Its September housing report found that annual house price growth had slowed to 0.8%, while available properties increased by 5% year-on-year. The company also estimated that higher mortgage payments were costing a typical buyer approximately £1,800 more annually than at the beginning of this year (2026). Regional differences remain significant, with northern areas generally performing better than London and parts of southern England.
The current conditions are creating much larger competition among sellers, which encourages more realistic pricing and more flexible negotiations. Some prospective buyers are delaying decisions while waiting for improved borrowing conditions or further details about government housing support.
The market’s direction will depend on mortgage rates, inflation, and economic confidence. Even though increased housing availability offers buyers more choice, sustained affordability pressures could continue to restrict sales and prevent substantial price growth in the upcoming months.
