Buyer numbers across the housing market have spiked after the Bank of England's first base interest cut earlier this month, according to Rightmove PLC (LSE:RMV).
Following an 11% uptick in July, the number of prospective buyers contacting estate agents has climbed by 19% since the first of August, the property portal said Monday.
This led Rightmove to up its forecast for house prices to climb by 1% over 2024, against -1% previously.
The number of sales agreed over the year so far is up 16% on 2023, while new sellers coming to market has increased by 5%, the group added.
“The first bank rate cut since 2020 has sparked a welcome late summer boost in buyer activity,” Rightmove director Tim Bannister commented, after base interest was reduced from 5.25% to 5.00% earlier in August.
“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.”
Average prices of properties coming to market fell by 1.5% to £367,785 between July and August, Rightmove said, in line with drops seen over the period historically.
Bannister added: “The conditions are there for a more active autumn market.”