Enquiries from buyers rise following base rate cut

August 26, 2024 by Heidi

Rates

There has been a sizeable annual increase in the number of people enquiring about properties for sale in the UK, as a result of the decision by the Bank of England (BoE) to reduce the base rate.

The newest House Price Index published by Rightmove shows that the number of people making enquiries about available properties went up by 19% year-on-year. The property listing company is attributing that sharp spike to the recent base rate cut announced by the BoE. It marked the first time that it has been reduced in four years, and the effect on the property market was immediate.

There was also an 11% month-on-month rise in enquiries about properties available to view during July. That provides further evidence to support the claims by Rightmove that the base rate cut was the decisive factor.

However the company has pointed out that there were other factors depressing the property market last year. Mortgage rates were extremely high, and inflation was leading to rising living costs for most people.

Rightmove property science director Tim Bannister told Mortgage Solutions that there was no question that the base rate cut had increased activity. He then added:

“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 homemover sentiment.”

This is good news, but mortgage advisors who have CeMAP training will still be hoping for significant house building so that prices can come down too.