After the Bank of England (BoE) reduced interest rates for the first time in four years in August, property buyer activity in the United Kingdom has increased, reported the British real estate company Rightmove.
Since August 1, agents from the company have recorded a 19% increase in the number of people contacting them regarding properties for sale compared to the same period last year.
The real estate market was unusually slow in 2023 due to high interest rates and the cost of living crisis. The Bank of England’s Monetary Policy Committee, however, reduced the key interest rate by a quarter of a percentage point to 5% at the beginning of August.
– Although mortgage interest rates have not yet significantly decreased following the reduction of the key interest rate, the fact is that the long-awaited first reduction in borrowing costs has finally arrived, which is positive for buyer sentiment. As the summer holiday season comes to an end, conditions are being created for a more active autumn market – emphasizes Tim Bannister, the company’s director responsible for real estate.
The average five-year fixed mortgage rate now stands at 4.8%, according to Rightmove data, which is still higher than three years ago, prior to the first of 14 consecutive increases in the central bank’s interest rates, but significantly lower than the 5.82% recorded in 2023.
