Average new seller asking prices drop by 0.4% (£1,617) this month to £373,493, marking a larger-than-usual decrease for July. Sellers aim to attract buyers amid the distractions of the General Election, sports events, and the summer holiday season with appealing prices.
Market activity remains resilient
Despite concerns that the General Election might slow the housing market, activity has remained steady. “The number of sales being agreed is now an encouraging 15% above the same period a year ago, when mortgage rates were approaching their peak,” notes Tim Bannister, Rightmove’s Director of Property Science. Additionally, the number of new sellers entering the market is 3% higher than last year, showing that the election has not deterred most movers.
Buyer demand holds steady
While buyer demand remains stable overall, there’s a slight dip in the affordability-stretched first-time buyer sector, dropping by 2%. Many are awaiting the anticipated Bank of England Base Rate cut, expected as soon as August or September. “A Base Rate cut is expected to lead to lower mortgage rates, which could be the gamechanger for some would-be home-movers,” Bannister explains. The current average five-year fixed rate stands at 4.97%, a significant reduction from the peak of 6.11% in July 2023 but still higher than the 2.51% average in July 2021.
Positive signs for the autumn market
Political certainty following the General Election and the potential for a Base Rate cut are expected to enhance home-mover confidence. Guy Gittins, CEO of Foxtons, remarks, “It’s now a case of ready, set, go for the nation’s buyers and sellers, and we expect market momentum to continue to strengthen over the summer.” This sentiment is echoed by Verona Frankish, CEO of Yopa, who adds, “We largely expect that a summer of sustained house price growth is now on the cards.”
Future outlook
Despite the distractions of recent weeks, the housing market has demonstrated resilience. “A brief dip in asking prices will do little to slow the momentum that has built so far this year,” states Marc von Grundherr, Director of Benham and Reeves. The market is poised for a robust autumn, buoyed by political stability and potential financial relief from lower interest rates. This environment offers hope for both first-time buyers struggling with affordability and seasoned home-movers looking to make their next move in a stabilising market.
The UK’s property market is showing signs of resilience and potential growth as it heads into the autumn, supported by political stability and anticipated rate cuts. Landlords and home-movers alike can look forward to a period of increased activity and improved affordability, setting a positive tone for the latter half of the year.
The post Political stability and rate cuts to boost autumn property market as house prices dip appeared first on Landlord Knowledge - Landlord News, Information, Guides & Forum.Landlord Knowledge - Landlord News, Information, Guides & Forum - Providing Essential and Free Landlord News, Information, Guides & Advice