Zoopla: Half of UK Local Authorities See Slower House Sales as Two‑Year Mortgage Rates Jump to 5.6% Amid Iran War | EuroTelegraph

Zoopla’s August 2026 report shows 180 of 363 local authorities in Great Britain recorded longer average house‑sale times than a year earlier, while Moneyfacts data indicate the average two‑year fixed mortgage rate rose from 4.83% to 5.61% after the Iran conflict began.

Zoopla’s August 2026 property‑market report finds that 180 of the 363 local authorities across England, Scotland and Wales – roughly half – recorded longer average house‑sale times than in August 2025, while the average two‑year fixed residential mortgage rate climbed to 5.61% from 4.83% after the Iran conflict began, according to The Guardian (citing Zoopla and Moneyfacts). This combination points to a new regional split in the UK housing market.

The headline figure – 180 local authorities with slower sales – is presented alongside a national average time‑to‑sell that remained unchanged at 42 days in August 2026. The unchanged national average masks divergent trends at the local level, a point highlighted by Zoopla executive director Richard Donnell: “While the national time to sell has barely moved, that stability is masking a real divide opening up between local markets.”¹

Zoopla’s methodology compares the average number of days a property stays on the market in each authority with the same month a year earlier. The 180 authorities that slowed represent about 49.6% of the total sample, a proportion the report describes as “about half”.

Geographically, the report identifies a clear north‑south and east‑west divide. The ten fastest‑selling markets were all located in Scotland, with Falkirk posting an average of 11 days in August 2026, down from roughly 15 days a year earlier. By contrast, eight authorities – including Melton in the East Midlands and Westminster in London – saw average sale times of two months or more, with Melton reaching 76 days, an increase of about 31 days on the prior year.

The table below reproduces the selected local‑authority figures supplied in the packet. It shows the August 2026 value, the August 2025 value, and the absolute change in days.

These four examples illustrate the broader pattern: markets that were already quick to sell have become faster, while those with longer cycles have slowed further.

Moneyfacts’ latest figures show the average two‑year fixed residential mortgage rate stood at 5.61% on the Monday of the report (August 2026). This is a rise of 0.78 percentage points from the pre‑conflict level of 4.83% recorded before the end of February 2026.² The rate peaked at close to 6% in April 2026, indicating a sharp upward swing coinciding with heightened geopolitical uncertainty.

Both Zoopla and Moneyfacts attribute the slowdown in many local markets to “volatile conditions in the mortgage market amid the Iran war”, which have prompted buyers to adopt a “wait and see” stance, hoping for better financing terms. The Guardian’s coverage echoes this sentiment, noting that while some buyers in hotspot areas rushed to complete deals, others elsewhere became more cautious.

For prospective homebuyers, the higher two‑year fixed rate translates into a larger monthly repayment on a typical mortgage. A £250,000 loan at 4.83% would cost roughly £1,320 per month, whereas at 5.61% the payment rises to about £1,440 – an increase of £120 per month, or 9% higher. Although the packet does not provide a full amortisation table, the percentage‑point rise is enough to affect affordability calculations for many households.

For sellers, the regional split means that location now matters more than ever. In fast‑moving Scottish markets, the unchanged national average of 42 days still reflects sub‑30‑day sales, whereas in slower English authorities the average has stretched beyond two months, potentially increasing holding costs such as mortgage interest, council tax and maintenance.

Lenders are likely to see a shift in demand toward shorter‑term products or variable‑rate mortgages as borrowers seek to avoid locking in higher fixed rates. Moneyfacts does not break down product‑mix changes, but the rise to near‑6% in April suggests that risk‑adjusted pricing has tightened across the board.

The sequence shows a clear cause‑and‑effect chain: geopolitical shock → mortgage‑rate spike → divergent local‑market responses.

Zoopla, listed under the Wikidata entry Q842627, is a UK‑based online property portal. The packet does not confirm its current chief executive, headquarters or employee count, and notes that these details should be verified against the company’s own filings before publication.

Moneyfacts Group, founded in 1988 and headquartered in Norwich, United Kingdom, provides mortgage‑rate benchmarking and other financial data. As with Zoopla, the packet flags that executive‑level information should be cross‑checked with the firm’s latest disclosures.

The packet does not disclose the exact methodology Moneyfacts uses to calculate the average two‑year fixed rate, nor does it break down the regional distribution of mortgage‑rate changes. Likewise, Zoopla’s report does not specify why certain authorities, such as Melton, experienced a 31‑day slowdown – whether it reflects local economic conditions, inventory shortages, or buyer sentiment is not detailed.

Analysts will be watching whether the regional split persists once mortgage rates stabilise, and whether policy responses from the Bank of England – which is under pressure to adjust rates amid the ongoing Iran war‑driven market turbulence – will alter the trajectory.

If mortgage rates retreat from their April peak, the slower markets could see a modest acceleration, but the entrenched regional divide may linger if buyer confidence remains uneven. Stakeholders – from local authorities planning housing supply to lenders calibrating product pricing – will need to monitor both the mortgage‑rate trajectory and the evolving local‑authority data released by Zoopla in future quarters.

For now, the data underscore that a stable national average can conceal significant local disparities, and that financing costs are a key driver of buyer behaviour across the United Kingdom.