House sales in the UK saw a 5% increase in August compared to the same month last year, according to data from HM Revenue and Customs (HMRC). A total of 90,210 homes were sold across the country in August, showing a 5% rise from August 2023, although slightly lower by less than 1% from July 2024.
Mortgage lenders have been slashing their rates in recent weeks as the autumn housing market gains momentum. Experts suggest that it is an opportune moment for individuals to secure a mortgage deal. Holly Tomlinson, a financial planner at Quilter, stated that the year-on-year surge in property sales indicates a rebound in the housing market, buoyed by a softening of inflation and interest rate pressures.
Iain McKenzie, the chief executive of the Guild of Property Professionals, noted that the Bank of England has gradually decreased interest rates due to declining inflation levels, with expectations of a similar trend continuing towards the year-end. Andrew Lloyd from Search Acumen highlighted that the data reflects a keen interest from homebuyers to leverage more favourable borrowing conditions.
Nicky Stevenson, managing director at Fine & Country estate agents, emphasised that reduced interest rates lead to lower monthly mortgage payments, potentially attracting more buyers to the market. However, Jason Tebb, president of OnTheMarket, cautioned that while decreasing mortgage rates are boosting confidence, affordability remains a significant concern, urging sellers to price their properties realistically.
The housing market’s resilience and the growing affordability for buyers are optimistic signs for the property sector. As mortgage rates become more competitive, buyers may find it an ideal time to enter the market and explore opportunities for homeownership. With continued support from stabilising mortgage conditions, the housing market may see further growth in the months ahead.