UK House Prices See Summer Boost as Interest Rates Fall

The UK property market has seen a welcome boost in buyer activity following the Bank of England’s decision to cut interest rates earlier this month. According to Rightmove’s House Price Index, new sellers listed their homes for an average of £367,785, down by £5,708 (1.5 per cent) compared to the previous month.

UK house prices have fallen by nearly £6,000 this month

The base rate cut, the first in four years, has accelerated mortgage rate drops and contributed to improved buyer demand. Many lenders are now offering five-year fixed mortgage rates below 4 per cent, although experts say they still have some way to come down.

The first bank rate cut since 2020 has sparked a welcome late summer boost in buyer activity. - Tim Bannister, Rightmove’s director of property science

The property market typically experiences a slowdown in August due to the school holidays, as buyers with children put their home-moving plans on hold to enjoy holidays or time with family. However, this year’s summer sellers may find that there is a degree of ‘buyer buzz’ around the market that was missing in the peak-mortgage-rate market this time last year.

The school holidays tend to mean buyers who have children put their home-moving plans on hold

Rightmove expects higher asking prices to return as the summer holiday season comes to an end and the conditions are there for a more active autumn market. The Bank of England’s decision to cut interest rates has provided a much-needed boost to the property market, and it remains to be seen how the market will respond in the coming months.

The Bank of England’s decision to cut interest rates has provided a much-needed boost to the property market

As the property market continues to evolve, it’s essential to stay informed about the latest developments and trends. Whether you’re a buyer, seller, or simply interested in the market, it’s crucial to understand the factors that influence house prices and the overall state of the market.

Understanding the factors that influence house prices is crucial in today’s market

In related news, energy bills are set to rise by 9% in time for the winter months, which could have a significant impact on household budgets and the overall economy. As the cost of living continues to rise, it’s essential to stay informed about the latest developments and trends in the property market and beyond.