Agreed house sales jumped by a quarter last month as buyers flooded back to the market on the back of a steady drop in mortgage rates.
According to property firm Zoopla, the number of sales agreed in the four weeks to September 22 was up by 25% year on year.
This was as mortgage rates sunk to a 15-month low following “intense competition” among lenders, prompting those previously put off buying to finally make the move, Zoopla said.
Demand was said to be 26% higher in the meantime, as the drop in mortgage rates coincided with a “modest” increase in house prices.
These ticked up by 0.7% across the whole of the UK to £267,100, Zoopla added, climbing by as much as 5.1% in Belfast, but dropping in Cambridge, Aberdeen and Portsmouth.
“Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years,” Zoopla executive director Richard Donnell said.
“Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market.”
Zoopla forecast these to settle between the high 3% to low 4% range in 2025, with the average five-year fixed 75% loan-to-value mortgage having dropped from 5.5% to 4.3% over the past year.
The property firm also highlighted an increase in second home-owners placing properties on the market, driven by speculation over tax changes in the upcoming Autumn Budget.