The Bank of England’s interest rate cut in August and the knock-on reduction in mortgage rates seems to have had an immediate effect on the capital’s property market.
Data from London residential experts Chestertons shows a 25% increase in the number of houses and apartments coming onto the market than in the same month last year, with a month-on-month rise of 18% than in July. This change provides more choice for buyers and indicates confidence from vendors.
Compared with August last year, there were also fewer unsuccessful exchanges and completions as well as fewer reductions in the advertised selling price of a property.
Matt Thompson, Head of Chestertons Sales commented: “August was another great month, showing positive movement and a healthy market. In the autumn, we predict that the combination of low inflation, the drop in interest rates and the subsequent decrease in mortgages rates will all contribute to consumer confidence and sustained growth.”
