August’s base rate reduction has boosted buyer demand, according to property website Rightmove, with buyer numbers up by nearly a fifth compared to the same period last year.
Demand in July increased by 11% compared to July 2023, Rightmove said, but following the base rate cut it has jumped again and is now 19% higher than the same time a year ago.
Tim Bannister, property expert at Rightmove said: “The first Bank Rate cut since 2020 has sparked a welcome late summer boost in buyer activity. 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. As the summer holiday season comes to an end, the conditions are there for a more active autumn market.”
Mortgage rate reductions gather pace
Recent weeks have seen several lenders reduce their mortgage rates in response to August’s rate cut, with the lowest rates available for home buyers.
Halifax, Barclays, HSBC, Nationwide and NatWest are among the lenders who have trimmed their rates and are now offering buyers five-year fixed rate mortgage deals lower than 4%. With more reductions in the base rate expected in coming months, buyer numbers are likely to increase further as they seek to take advantage of more competitive deals.
The good news is that you can secure most mortgage deals up to six months in advance of completion, but if you’re worried about rates coming down further and missing out on a better deal, L&C offers a Rate Check service to help ensure this doesn’t happen. You simply ask your adviser for a Rate Check at any time before your mortgage is due to complete, and they’ll review the market to check that the deal you’re signing up for is the still the best one for you. If it isn’t, they’ll search the market for a better option and help you to switch if there is one.
More positive sentiment surrounding the housing market generally has prompted Rightmove to revise its property price forecasts for the year.
At the end of 2023 their forecast indicated a 1% by the end of 2024, but they are now expecting asking prices to remain steady for the rest of this year, ending the year with prices 1% higher than at the end of 2023.
