Key Highlights from the Rightmove Report

 

  • Increased Buyer Demand: Since the Bank of England’s rate cut, there has been a marked surge in the number of potential buyers contacting estate agents, with a 19% increase compared to the same period last year. This is up from an 11% increase observed in July, indicating a sharp uptick in buyer interest following the rate cut.

 

  • More Sellers Entering the Market: The number of new sellers coming to market has also risen by 5% year-on-year, signaling growing confidence among homeowners looking to sell. This increase in new listings suggests that sellers are optimistic about the current market conditions and are eager to take advantage of the heightened buyer activity.
  • Sales Agreements on the Rise: The number of sales agreed is now 16% higher than this time last year, a clear indication that the market is responding positively to the lower interest rates. This improvement comes after a more subdued period last year when mortgage rates were near their peak.

 

  • Rightmove’s 2024 Forecast Revised: In light of the positive market data, Rightmove has adjusted its 2024 price prediction from a decline of 1% to a modest increase of 1%. This change reflects the growing optimism in the property market as the effects of the rate cut begin to take hold.

 

  • Seasonal Price Adjustments: Despite the overall positive trends, average new seller asking prices have experienced a seasonal drop of 1.5% (£5,708) this month, bringing the average asking price to £367,785. This decline is consistent with the long-term trend of price reductions in August, observed for the past 18 years.

Mortgage Rates: A Mixed Bag

Rightmove’s weekly mortgage tracker reveals that the average 5-year fixed mortgage rate has decreased to 4.80%, down from 5.82% a year ago. For those with a 40% deposit, the best available 5-year fixed rate is now 3.83%, the lowest since before the mini-Budget in September 2022. While this reduction is encouraging, Tim Bannister, Rightmove’s Director of Property Science, cautions that further cuts to the Bank Rate may be needed for home movers to see more substantial reductions in mortgage rates.

Bannister notes, “Buyers and sellers are more optimistic about the outlook for the market, evidenced by the immediate upturn that we’ve seen in activity. However, though optimism around the direction of mortgage rates is justified, the reality is that they are still very high compared with a few years ago. Sellers mustn’t get too carried away by the higher buyer activity levels compared with last year, and continue to come to market with a competitive price.”

 

Looking Ahead

As the market continues to respond to the Bank of England’s rate cut, both buyers and sellers should remain mindful of the ongoing changes in mortgage rates and overall market conditions. If you’re considering a move in 2024, now could be an opportune time to take advantage of the increased activity and renewed market confidence.

 

At Henshaw Fox, we’re here to guide you through every step of your home-moving journey. Whether you’re buying or selling, our team of experts is ready to provide you with personalised advice and support.

 

📞 Call us today to schedule your free home appraisal: 01794 521339

🌐 Find out more at: www.henshawfox.co.uk

Stay informed and make the most of this promising market shift with Henshaw Fox.

 

Full report can be found at House Price Index | Property blog (rightmove.co.uk)

Click to read more Henshaw Fox blogs on selling and buying a new home!