Interest Rates Are Falling – Should I Sell Now or Wait?

Interest rates are in the news, impacting many financial decisions.

They’ve fallen four times since last year’s peak of 5.25%. The Bank of England’s base rate – on which lenders model their own rate – now stands at 4.25%.

What’s more, analysts predict at least two more falls this year. We could end 2025 with the base rate as low as 3.5%. It’s not quite back to the good times five years ago. However, for many current or imminent buyers, the picture looks pretty good with these improved interest rate scenarios.

But while it’s an improving situation for buyers, sellers are put in something of a dilemma. Should we sell now? Or wait to see if rates fall further later this year?

Here’s something of a spoiler alert – there’s no right or wrong answer to these questions! Let’s look at the pros and cons regarding interest rate changes.

Good reasons to wait to sell your home

Although the future can never be guaranteed, there are some good reasons to put the For Sale board away until late in the year:

• Those interest rate falls: Moneyfacts, a respected independent mortgage market monitor, expects “rates will be cut many times this year.” Many individual mortgage companies are anticipating this and cutting their interest rates already in a bid to woo customers;

• Buyer confidence may well rise: The ‘mood music’ around interest rates will be loud and clear if rates fall. This gives buyers more leeway and a wider choice of properties;

• You may be able to try a higher asking price: Although it’s never good to ‘push the envelope’ on asking prices, typical house prices may well go up by 1% or 2% between now and autumn. This is fuelled by lower interest rates affecting pricing decisions;

The ‘in by Christmas’ phenomenon: Regular readers will know how frustrated I am by the slow house-moving process. This has worsened in recent years. There’s an obvious psychological target for many who buy a home in late summer. They want to be in their new home by year-end. Some agents, although not all, suggest that buyers are therefore more decisive in the late August/early September period.

Good reasons to ‘sell now’

Life is never easy. Your decision should also consider these strong reasons why it’s better to jump in and beat some possible nasties later in the year:

• Inflation is predicted to rise, albeit briefly: The main measure of inflation is 2.6% now. The Bank of England predicts it will hit 3.7% in September for only a few months. However, that might deter buyers, so might your home be a victim of purchaser cold feet? These fluctuations affect confidence;

• There’s a government Budget this autumn: No one knows what it will say. This possibly goes for the Chancellor too, at the moment. Once again, speculation could dampen buyer confidence. This is impacted by interest rate adjustments;

Might the market be flooded in autumn?: There’s a controversial Renters Rights Bill set to become law this summer. This, perhaps, will trigger more landlords to sell. Depending on your home, it might just have a lot of competition from other properties on the market in the final third of the year.

It’s your call, of course

The pros and cons listed above are all public knowledge – but only you will know the personal circumstances facing you, your family and your finances. Much of your decision will be guided by interest rates, of course, as they directly affect borrowing costs.

What I would urge, whatever your decision, is that you manage your expectations about interest rate impacts.

It’s been reported by Propertymark that even after a seller accepts an offer from a buyer, 25% of purchases take an average of 17 weeks to move to exchange of contracts. At this point, the deal is sealed. And that’s actually an improvement from most of the past two years!

The key point to remember is that even if you enter the market right now, it could take anything up to six months to complete the move.

Therefore, with guidance you can find elsewhere on Move iQ, there’s every reason to take a good agent’s advice on preparing your home for a sale. Consider interest rates, set a realistic asking price, and get the property in optimum condition for viewings. Focus on marketing and then negotiations.

And keep an eye on the housing market. We know circumstances can change quickly. This is one reason why there are arguments for and against selling now, or waiting a while.

Whichever you decide – the very best of luck!

Last Updated: January 9th, 2026