Interest rates matter, but asking price is still what sells a home
Homes priced right first time find a buyer in around five weeks, while overpriced homes take three months longer, and new LRG research shows what buyers are looking for.
The Bank of England’s latest decision to hold interest rates is welcome news for buyers and sellers, providing greater stability and confidence for those considering a move this summer. However, for anyone buying or selling a home, the figure that matters most is still the asking price. Homes priced right from the start are finding buyers in around five weeks, 36 days on average, according to Rightmove’s May House Price Index. While those that launch too high and later reduce take 127 days, a full three months longer.
New research from LRG shows why. Buyers are committed, but selective: asked what would stop them making an offer, 56% named a home being overpriced for the property or area – comfortably the biggest dealbreaker, ahead of major work needed (42%) and damp or structural problems (35%). The findings come from LRG’s Sales Report Summer 2026, a survey of more than 700 buyers and sellers across the market, from first-time buyers to downsizers.
National data also shows the cost of starting too high. Zoopla research published in May found that 44% of homes listed over the past three years failed to sell, and a third of those sellers admitted, with hindsight, that they had priced too ambitiously. Nationally, almost a third of homes currently for sale have had a price reduction, according to Rightmove.
“Buyers can check what comparable homes actually sold for in a couple of minutes, and they do,” says Neil Louth, Group Executive Director of LRG and CEO of The Acorn Group. “Nowhere is that more evident than in London, one of the most price-sensitive markets in the country. A home that launches at the right figure attracts viewings in its first fortnight, when interest is at its peak. One priced to ‘leave room for negotiation’ often sits unsold, and the longer it sits, the harder that conversation becomes.
“The Bank of England’s decision to hold rates is another positive signal for the market. It gives buyers confidence to commit and supports the increasingly competitive mortgage market we are seeing from lenders. However, regardless of where rates sit, the fundamentals remain the same. Realistically priced homes are selling, and they’re selling well. This is a market that rewards getting it right first time.”
Sellers themselves agree, often with hindsight. Looking back on their sale, more than a third (35%) said getting the price right from day one mattered more than they had expected.
That makes professional advice on pricing the most valuable preparation a seller can do. LRG’s research found more than three-quarters of sellers (77%) priced on an agent’s valuation – 48% on a single valuation and 29% after comparing several – while only 2% relied on gut feeling.
“The strongest starting point is a professional valuation based on what similar nearby homes have actually sold for, not what they were listed at,” explains Neil. Buyers in the survey put it more bluntly. Asked what they wished sellers would do, their advice included “get real on price” and “put an actual price, not ‘offers over’”.
“The decision to keep rates unchanged should help support market confidence,” concludes Neil. “Stability gives buyers reassurance when making long-term financial commitments and provides sellers with confidence that demand remains supported. We are already seeing lenders competing hard for business, with new mortgage products being launched and rates becoming increasingly competitive as lenders position themselves for improved market activity.
“Buyers are active, lenders are competing hard for business and there is positive momentum across the market. The homes that succeed this summer will be the ones launched at a figure buyers can justify from day one.”
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