Merryn Talks Money Asking Prices vs Reality: The True State of the Housing Market
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Jan 21, 2026 John Stepek, a Senior reporter at Bloomberg and author of the Money to Sift newsletter, dives deep into the UK housing market's complexities. He discusses why January's asking prices aren't as promising as they seem, with recent sellers often losing money. The conversation tackles the stark contrast between London and the rest of the UK, the decline of flats as investments due to rising liabilities, and the implications of falling mortgage rates. Stepek also offers practical buying advice in this shifting landscape.
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Interest Rates Drive Sentiment
- Rightmove tracks sentiment and often mirrors broader indices but is the most optimistic measure.
- Mortgage rates falling to their lowest since Sept 2022 is the key reason buyers feel more confident.
New-Build Premiums Hurt Short-Term Sellers
- Many recent sellers are realizing they sold for less than they paid, especially in London.
- New-build premiums (around 16%) and moving costs mean short holds often lose money.
Regional Divergence Explains Recent Gains
- London and the South East recovered strongly after 2008 while much of the rest of the UK lagged.
- Recent regional gains mostly reflect closing the gap rather than a nationwide boom.