UK housing market poised for strong autumn boost
Interest rate reduction sparks optimism as housing supply rises and market activity gains momentum.
The UK housing market is gearing up for a robust period, with signs of increased supply, heightened activity among buyers and sellers, and a fresh wave of confidence sweeping across the sector.
Following a recent reduction in interest rates, market conditions are becoming more favourable for the property market, with Gateway observing a notable uptick in enquiries and movement within the market.
Autumn renewal
Industry experts predict that the confluence of rising housing inventory and renewed market confidence will set the stage for a busy few months ahead.
Buyers, who had previously held back due to rising mortgage rates, are now re-entering the market, while sellers are responding to the demand with new listings.
This dynamic is expected to drive significant momentum for the housing market throughout the autumn.
According to Rightmove’s September House Price Index, a window of opportunity for Autumn presents itself, stating:
- The number of sales being agreed is up by 27% year on year, a strong rebound compared with last year’s more subdued market as pent-up buyer demand is released.
- Homeowners are more confident to come to market, with the number of new sellers up by 14% on this time last year, and the average number of available homes for sale per estate agent at its highest since 2014.
Expert opinion
Nicky Stevenson, managing director of Fine & Country, shared her projections on the state of the UK property market in a recent PropertyWire piece.
She said: “Traditionally autumn brings renewed momentum to the housing market.”, summarising that a strong autumn is anticipated for the UK real estate market, driven by increased buyer and seller activity, as well as a boost in confidence following the recent interest rate cut.
Stevenson added: “The supply of homes for sale now stands at a 7-year high, with an average of 33 homes per agent, giving buyers more choice — this increased supply is expected to keep house price inflation under control throughout 2024 into 2025.”
PropertyWire outlines that based on the last five years, property sales in September are typically 12% higher than those in August.
August additionally witnessed a decline in prices, which has allowed for a rebound.
The recent reduction in interest rates has already had a beneficial effect on the market, as demand is still growing and mortgage approvals in July increased by 26% year-on-year to their highest level in nearly two years.
What does this mean for the future?
With more properties entering the market and demand rebounding, both buyers and sellers are taking advantage of favourable conditions.
The increased supply is expected to keep house price inflation in check, while the surge in mortgage approvals and overall activity signal a healthy outlook for the coming months.
Selling your home?
Gateway provide a comprehensive, nationwide estate agency service with our low fixed-price packages.
Additionally, we also provide conveyancing and mortgage advice services, meaning you can have peace of mind with a fully joined-up, cost effective approach to moving home.
Get in touch with us today about your move and let’s see how we can support you.
Call us on 01702 443 546, or visit gatewayresidential.co.uk.
