Both Update Manager and Add/Remove Applications were doing the same
thing to me.

The problem (and solution) was in /etc/hosts. You'll find a line:
127.0.1.1 <hostname>.<domain>

Either remove the domain or add a space and a second hostname to the end, like 
this:
127.0.1.1 <hostname>.<domain> <hostname>

-- 
Update manager could hang when user wants to perform update 
https://bugs.launchpad.net/bugs/234879
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