A majority of Britons believe that inflated asking prices, unappealing locations and the rising cost of renovation are the key reasons homes are failing to sell, according to new research by property buying firm Good Move.
In a wide-ranging consumer survey conducted in partnership with polling platform Find Out Now, six out of 10 (62%) respondents cited unrealistic pricing as the number one reason homes languish on the market – a striking indicator of the disconnect between vendor expectations and what buyers are willing to pay in a high-interest-rate climate.
Location was the second most-cited concern, with almost half (47%) of respondents saying that undesirable neighbourhoods are a major deterrent to potential buyers.
Meanwhile, 44% blamed the condition of the property, saying homes that require extensive work are increasingly unattractive to buyers wary of costly renovations and material shortages.
MORTGAGE MARKET TURBULENCE
Financing challenges also featured heavily: four out of 10 (42%) said difficulty securing a mortgage or raising sufficient funds was a key reason sales were falling through – a sign of ongoing turbulence in the UK mortgage market following successive Bank of England rate hikes.
Nima Ghasri, director at Good Move, says many sellers may be pricing themselves out of the market.
And he adds: “It’s interesting to see that people are overvaluing their property, and as a result are struggling to sell.
“Often when people overvalue their home, they spend much longer trying to sell it – which can leave them in limbo, with mounting costs and missed opportunities to buy elsewhere.”
Ghasri adds that the survey results highlight the growing importance of keeping properties in good repair.
“While some buyers want a project, most don’t – and when a home needs too much work, it limits its appeal and can drive down value,” he says.
COSTLY DELAYS
The survey also offered insights into public perceptions around the timeline of a typical sale. A quarter (25%) of people believed that homes take between three and four months to sell, while 24% expected the process to take five to six months. Only 1% thought a sale could be wrapped up in less than a month.
Reality, however, tells a slightly different story. Among those who had attempted to sell a home, just 13% reported selling within three to four months, and 11% said it had taken more than six months. A concerning 3% said they had failed to sell at all.
Other perceived barriers to selling included poor-quality photography or marketing (17%), excessive competition from similar homes (9%) and seasonal timing (9%). Only 6% blamed the estate agent’s performance.
