The recent Bank of England rate cut has led to a significant uptick in property market activity, according to data from Rightmove PLC (LSE:RMV).
The property portal has reported a 19% increase in potential buyers contacting estate agents since 1 August, compared to the same period last year.
In July, Rightmove noted a year-on-year increase of just 11%.
Rightmove’s director of property science Tim Bannister stated: “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.”
In response, Rightmove has raised its 2024 forecast from a 1% drop to a 1% rise in new seller asking prices.
The number of sales being agreed is now 16% higher than a year ago, with new seller numbers also up by 5%.
Mortgage rates have also shown signs of improvement. The average five-year fixed mortgage rate has fallen to 4.80%, down from 5.82% a year ago, with the best available rate for those with a 40% deposit now at 3.83%.
“Although it will likely take a few more cuts to the Bank Rate for home-movers to see a more substantial reduction in mortgage rates, it’s home-mover sentiment that has immediately been heightened,” said Bannister.
Josephine Ashby, managing partner at John Bray Estate Agents in Cornwall, added: “With the election now behind us we are seeing an improvement in buyer engagement as more certainty in the political and economic landscapes forms.”
Ashby said the market in North Cornwall “is warming up nicely to coincide with the long overdue return of sunshine”.