Latest data from London estate agency Chestertons suggests that the expected interest rate cut in August led to house hunters stalling their activity in July, resulting in 14% fewer buyers entering the market than in June.
Buyers who were in the last stages of their property purchase, however, remained eager to finalise their search. As a result, the London property market remained buoyant in July with 7% more properties changing hands.
Matt Thompson, head of sales, says: “July marks the beginning of the summer season when many aspiring homeowners postpone their search until after their holidays. This year, this quieter period coincided with the scheduled announcement of the Bank of England which contributed to a dip in enquiries in July.”
On 1 August, the Bank of England fulfilled many analysts’ predictions by lowering interest rates to 5%, marking the first interest rate cut since March 2020. “The market has also seen a number of lenders introducing more attractive mortgage products, including five-year fixed rates of sub 4%, which we expect more buyers to take advantage of. Sellers are anticipating this and the market will benefit from more properties being put up for sale over the coming months”, Thompson adds.
Chestertons’ data confirms that more homeowners are preparing to put their property on the market in the autumn, with the agency registering a 15% increase in the number of sellers getting their home valued. “With more available properties as well as pent-up demand from buyers, London’s property market will see an unusually busy summer whereby sellers will have the upper hand during price negotiations. To stay ahead of the competition, we advise house hunters to be as prepared as possible when starting their search and stay in regular contact with their local estate agents”, Thompson concludes.
