New buyer numbers surge after Bank Rate cut, says Rightmove

19th Aug 2024 10:52

(Sharecast News) - This month's interest rate cut has provided a much-needed catalyst to the UK housing market, with the number of buyers rising by nearly a fifth, according to Rightmove.

The number of potential buyers contacting estate agents about homes for sales has risen 19% on last year since 1 August, with annual growth accelerating from 11% across the month of July.

The upturn was driven by the first Bank of England rate cut in four years at the start of the month, with the Bank Rate falling to 5.0%, down from the 16-year high of 5.25% which has been in place since June 2023.

Meanwhile, the number of new sellers coming to market was also 5% ahead of last year as the confidence to move grows.

"The first Bank Rate cut since 2020 has sparked a welcome late summer boost in buyer activity," said Tim Bannister, Rightmove's director of property science.

"While mortgage rates aren't yet substantially lower since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment," Bannister said.

The property platform's weekly mortgage tracker shows that the average five-year fixed mortgage rate is now 4.80%, down from 5.82% a year ago.

Average new seller asking prices were down 1.5% over the month at £367,785, though Rightmove said that was in line with long-term trends of monthly declines between July and August.