Number of agreed UK house sales over past month ‘up 15% on 2023’

According to Rightmove, the number of agreed house sales over the past month increased by 15% compared to the same period last year, as buyers are hopeful for significant interest rate cuts anticipated as early as August.

The UK's largest property website reported that homebuyers largely disregarded the "distractions" of the general election and the Euro 2024 football tournament, maintaining transaction levels well above those of the previous year.

The average price of property listed for sale saw a slight decrease of 0.4%, or ￡1,617, bringing it to ￡373,493. However, it noted that prices in the southeast dropped by 2%.

However, Rightmove reported that the number of agreed sales was now an "encouraging" 15% higher than the same period last year, with sales expected to rise by the autumn. This time last year, the UK market was grappling with peak mortgage rates.

Rightmove director Tim Bannister noted that many potential home movers were waiting for the first Bank of England rate cut from the current 5.25% before making any moves.

Last week, households received mixed signals regarding potential interest rate cuts. On Wednesday, Bank of England's chief economist, Huw Pill, stated that key inflation measures remained "uncomfortably high," dampening hopes for an early August rate cut.

Despite this, several major lenders seemed to believe otherwise, as they reduced the rates on their best mortgage deals by the end of the week. Halifax, the UK's largest lender, cut its rates by up to 0.13%, while Barclays reduced them by up to 0.33%, with Barclays' five-year fixed-rate mortgage now being the cheapest on the market at 4.08%.

These reductions follow a series of rate cuts from lenders such as NatWest and HSBC in recent weeks, leading brokers to suggest a rate war is underway.

Adrian Anderson, managing director of the brokerage Anderson Harris, stated that cheaper mortgage rates would positively impact people's ability and willingness to borrow.

He also mentioned that he would not be surprised to see some five-year fixed-rate mortgages priced below 4% by the end of the year.

Rightmove noted that the average five-year fixed rate is currently 4.97%. Although this is significantly lower than the peak of 6.11% in July 2023, it remains much higher than the average of 2.51% offered to homebuyers in July 2021.

Rightmove’s Tim Bannister stated that interest rate cuts could be the gamechanger needed to kickstart the market.