Bank of England rate cut spurs home moving activity: Data reveals a 19% increase in buyer demand
Recent data suggests great improvement for the housing market in England.
As stated by The Negotiator in a recent article, the interest-rate cut by the Bank of England has sparked a dramatic new surge in inquiries from house buyers – prompting Rightmove to revise its house price forecast for 2024.
Read on to discover the latest market trends, news, and what this could look like for you.
Welcome boost to buying activity
Rightmove’s Director of Property Science, Tim Bannister, says: “The first bank cut since 2020 has sparked a welcome late summer boost in buyer activity.”
As presented by The Financial Reporter, the number of prospective purchasers contacting Estate Agents to view homes for sale has increased by 19% since the Bank Rate drop on August 1st compared to the same period last year.
The article suggests the number of deals that buyers and sellers agree upon is still tracking very well, 16% higher than the previous year, and the number of new sellers entering the market is now a steady 5% higher than it was at this time last year.
In comparison to early summer
At the peak of summer, Property Reporter summarised signs of improvement in the housing market, sharing the House Price Index Survey showing that average house prices increased almost £1,500 (0.4%) in June 2024 to £360,175 - the highest level of growth in almost a year.
In summary, house prices were at 0% inflation, projected to rise by 1.5% by the end of the year, with an average house price at £264,000.
Confidence is growing
Gateway’s Head of Residential, David Tindall, said: “We are beginning to see confidence returning to the market, following the uncertainty the election brought and now that inflation appears to have stabilised. We are receiving an increase in enquiries from both buyers and sellers, meaning the housing market appears to be showing a good level of resilience”.
According to its data, Rightmove says this type of drop is usual for the summer months, with August seeing a monthly decline in prices from July for the last 18 years.
Gateway will keep you abreast of all the latest developments in the property market as they unfold.