See more This is Money on Google - save us as a Preferred SourceBy HELEN CRANE, DEPUTY EDITOR, THIS IS MONEY Updated: 10:05 BST, 12 July 2026
Only one in three Britons think house prices will rise in the next year, putting pressure on sellers to be realistic about asking prices.Faith in the market is waning, with 31 per cent forecasting prices will rise, down from 51 per cent last September, the property website On the Market reports.The housing market has been sluggish for the past two years, with sellers outnumbering buyers. Higher mortgage rates and economic uncertainty continue to put people off moving home.In the year to the end of June, prices edged up by just 0.6 per cent, latest figures from Lloyds Bank show.Estate agents up and down the country report that sellers have not accepted this reality, however. Sellers have been overvaluing their homes which makes them harder to sell, and holding out for a figure that buyers won't meet. Sluggish: The housing market is struggling with sellers outnumbering buyersIt leads to homes remaining on the market for months, which can make them even harder to sell.Meanwhile, buyers know they have the upper hand and are prepared to negotiate hard.Josh Endacott, an estate agent at London firm 1st Avenue, says: 'We are seeing a market where buyers have more choice than at any point in over a decade, and yet too many sellers are still pricing as if it were 2022 or 2021, when demand was at its absolute peak.'However, the data suggests that sellers may now be experiencing a reality check.Jason Tebb, president of On The Market, says: 'The property market works most effectively when buyers and sellers share realistic expectations, and it's encouraging to see that gap narrowing.'As expectations become more aligned with market conditions, we should see more properties priced appropriately from the outset, helping transactions progress more quickly and smoothly.'More than a third (34 per cent) of those surveyed thought that interest rates would rise in the next year. The last time the Bank of England's Monetary Policy Committee met to set the base rate on June 18, it kept it steady at 3.75 per cent. It is forecast to do the same on July 30.However, 69 per cent of active buyers are confident they can afford a new home, despite inflation and higher food and fuel costs.Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.This is Money's partner L&C can help you with its fee-free mortgage service.> Compare mortgage rates> Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.> Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
