Time to Sell: Will Rising Interest Rates Affect Selling My Property?

Young couple at desk checking out interest rates

Published 22nd June 2023

With breaking news today that the Bank of England have raised the base rate from 4.5% to 5%, the highest level since 2008, we are here to discuss the impact that rising interest rates have on selling your property.

While rising interest rates might sound daunting at first, we’re here to shed some light on the subject and help you navigate through this potential challenge. So, let’s dive in and explore how rising interest rates can affect your property sale and discover strategies to make the most of the situation!

  1. Understanding Rising Interest Rates:

Before we explore the implications, let’s grasp the concept of rising interest rates. Interest rates typically increase as a result of changes in the economy, monetary policy, or market conditions. These rates affect various aspects of the property market, including property buyers’ purchasing power and the affordability of mortgages. When interest rates rise, it means that borrowing money becomes more expensive.

  1. The Impact on Buyers:

One of the primary ways rising interest rates can affect the sale of your property is by influencing potential buyers. As interest rates increase, the affordability of homes can decrease for some buyers. This can ultimately lead to a decline in demand, as some buyers may be priced out of the market or decide to postpone their purchase.

However, it’s essential to remember that not all buyers are equally affected by rising interest rates. Buyers who are financially secure or have substantial down payments may be less impacted and still have the means to purchase your property. Additionally, some buyers might be motivated to act quickly to secure a mortgage before rates rise further, which could benefit sellers.

  1. Pricing and Negotiation Strategies:

In a rising interest rate environment, pricing your property competitively becomes crucial. Higher interest rates mean higher borrowing costs for buyers, which may limit the amount they’re willing to pay for a property. Therefore, it’s important to work with a knowledgeable property professional who can provide accurate market analysis during your property valuation and help you set an appropriate listing price.

Negotiation becomes even more critical when selling your property in these circumstances. Be open to reasonable offers and consider flexibility on terms to attract potential buyers. As a pro-active estate agent, we prefer to create individualised marketing plans for each of our vendors. We will emphasise the value and unique features of your property to set it apart from others on the market. By remaining proactive, adaptable and ready to update your marketing if things get tough, we’ll always be working to increase your chances of a successful sale.

  1. Highlighting Financial Benefits:

While rising interest rates might initially seem like a hurdle, it’s essential to keep in mind that they can bring certain financial benefits to sellers as well. As interest rates increase, rental prices may also rise, making property investments more attractive. This could potentially lead to an influx of investors looking to buy properties, which can create a favourable selling environment.

Furthermore, if you’re planning to sell your property to upgrade or downsize, it’s worth considering that while interest rates may be higher when you purchase your next property, the interest rates on your new mortgage will also be higher. This can balance out the impact and make the overall cost difference less significant.

We have friendly and experienced mortgage advisors situated within all of our offices, so if you’re concerned and have any questions or are simply looking for the best mortgage deal available, simply call in to your local Arden branch for an informal chat. Alternatively, give us a call or visit HLC Mortgages online.   

  1. Timing and Market Conditions:

The timing of your property sale can significantly influence its success, regardless of interest rates. While rising interest rates may present some challenges, strong market conditions can counterbalance these effects. Keep an eye on market trends and consult with experienced property professionals to identify the optimal time to list your property.

In some cases, it may be beneficial to wait for interest rates to stabilise or for buyer sentiment to improve. However, trying to time the market perfectly can be challenging, and with interest rates having been at an all-time low over the last few years, it’s possible these new rates, although rising quickly, may settle down to become the new normal. Ultimately, focus on presenting your property in its best light, marketing it effectively, and remaining flexible in negotiations to maximise your chances of a successful sale.


In conclusion, rising interest rates can have an impact on the sale of your property, but they don’t have to derail your plans. By understanding the implications, adjusting your pricing and negotiation strategies, and capitalising on potential financial benefits we can help you can navigate through this situation with confidence.

Working closely with a knowledgeable estate agent can provide valuable insights and guide you through the process. With the right approach, timing, and market conditions, you can still achieve a successful and profitable sale, even in the face of rising interest rates. Embrace the challenge, stay positive, and keep trust in your estate agent!

Needless to say, we’d be happy to provide you with some expert advice on the likely sale value of your home.

So if you would like a free, no obligation valuation, please contact us today!