Three in five homes listed for sale since January are still on the market, Zoopla reports, as high mortgage rates give buyers a severe case of cold feet. Agreed sales are down 7% from last year, with Wales and the East Midlands taking the hardest hits at 12% and 11% drops respectively.

First-time buyers are feeling the brunt, thanks to a jump in mortgage rates in April - prompted by the financial upheaval from the US-Israeli war with Iran - which added an average of £125 a month to a typical mortgage at its peak compared with January. In London, that figure was a whopping £232 a month extra for first-timers. The average two-year fixed rate skyrocketed from 4.83% in early March to a peak of 5.90% on April 12, before settling slightly to 5.54%, according to Moneyfacts. This helped push buyer demand down 15% year-on-year.

But not all is bleak: in northeast England, first-time buyers only saw an extra £66 a month. Richard Donnell of Zoopla notes, 'The national picture can only tell you so much. For sellers still waiting for an offer, the conversation to have is about price.' He adds that recent rate cuts are a positive for buyers. Meanwhile, the Bank of England reports mortgage approvals hit a two-and-a-half-year low in May.

Two-thirds of one and two-bedroom flats listed this year remain unsold, while two and three-bedroom homes are moving at a steadier pace. Estate agents report a mismatch between supply and demand across price ranges, with uncertainty from the Iran war and changing UK political leadership not helping. Jeremy Leaf, an estate agent in north London, says, 'Sales are taking much longer and it is proving increasingly difficult to generate commitment.'

Savills' Lucian Cook points to broader issues: uncertainty about the economy, regulatory reform in the private rented sector bringing more stock to market, and tax concerns at the top end. So if you're trying to sell, maybe drop the price - or start a war, apparently.