According to Rightmove data, estate agents reported a 19% increase in inquiries regarding houses for sale after August 1st compared to the same period the previous year.
It followed the Bank’s first rate reduction in almost four years, from 5.25% to 5%.
According to Tim Bannister of Rightmove, the Bank’s decision had undoubtedly “sparked a welcome late summer boost in buyer activity”.
“Although mortgage rates haven’t decreased significantly since the rate drop, the fact that the first cut, which was widely anticipated, has finally occurred and mortgage rates are declining, is excellent for it.
The backdrop is set for a busier autumn market as the summer vacation season draws to an end.
According to Rightmove, even if the high interest rates in 2023 caused the housing industry to sluggish down, August’s numbers were noteworthy and followed an 11% increase in inquiries in July.
A five-year fixed-rate mortgage’s average interest rate was reported to be 4.8%, down from 5.82% a year earlier when the Bank increased rates to 5.25%.
Additionally, the study discovered that average asking prices have dropped by £5,708 per month, or 1.5%, to £367,785 as of August 1.
