Amidst the uncertainty surrounding the forthcoming Autumn budget, the º£½ÇÊÓƵ property market has seen a surge in activity, with buyers undeterred by economic concerns. Following the Bank of England's decision to slash interest rates, the property sector experienced a significant increase in sales, with transactions up by one-third compared to the previous year.
Rightmove's house price index revealed that agreed sales jumped by 29%, and enquiries to estate agents saw a 17% year-on-year rise, as reported by .
This uptick in market activity coincides with a 2.8% increase in º£½ÇÊÓƵ house prices, as reported by the Office for National Statistics, which placed the average property value at £293,000 for the year ending August 2024, although London's market typically commands higher prices.
"Sales activity has not only bounced back from the low of last year but has continued an upward trajectory," commented Tim Bannister, Rightmove's director of property science. "There is also a healthy level of underlying buyer demand as people continue to plan their next move."
Inventory levels have improved, with a 12% increase in available homes compared to the previous year, marking the highest supply per estate agent since 2014.
This decade-high record in property listings has granted buyers greater selection and bargaining strength, resulting in a modest month-on-month increase of just 0.3% in the average listing price, now standing at £371,958.
Tomer Aboody, director of MT Finance, observed: "As a greater volume of properties come up for sale, this is creating a buyers' market with those who can afford to buy having increased choice, enabling them to negotiate a better price."
Chris Little, chief revenue Officer at finova, said that today's data is "another positive sign that the market is recovering, albeit slowly."
He further added, "With sub-5 per cent mortgage rates becoming more popular, and potential interest rate cuts on the horizon, homebuyer confidence is rising, and we'll likely see modest price growth through year-end."
A 'budget-shaped cloud' on the horizon?
As the budget looms less than two weeks away, speculation about potential tax increases, many of which could impact the property market, are at an all-time high. However, Aboody noted that "even with the uncertainty around the Budget lingering in the background, many buyers are still choosing to take the plunge, not knowing whether whatever the Chancellor announces could end up reducing their ability to buy if the markets react badly".
Tim Bannister from Rightmove also weighed in: "Despite a budget-shaped cloud on the horizon, the big picture still looks positive for the market heading into 2025. Market activity remains strong, despite affordability pressures on movers."
He concluded by saying, "Once we have more certainty about the contents of the budget, hopefully followed by speedy second and third Bank Rate cuts, we could see another surge in market optimism like we had in the summer."
