Demand resilient but Bank of England rate rises biting

The price of property coming to market falls by an average of 0.2% (-£905) this month, marginally below the 0% norm for this time of year, as new sellers temper their price expectations in response to rising mortgage costs and increasing buyer affordability constraints.

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Recent Base Rate rises to combat stickier-than-expected inflation are biting, with the number of sales agreed now 12% behind 2019’s more normal market, in contrast to 2023’s better-than-expected first five months.

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However buyer demand remains resilient, being 3% higher than 2019, with agents reporting that right-priced homes are still attracting motivated buyers due to a shortage of property for sale compared to historic norms

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The average interest rate on Rightmove’s mortgage tracker for a five-year fixed, 85% Loan-To-Value mortgage is now 5.69%, up by 0.49% compared to this time last month, with agents reporting that some movers are pausing until they have more certainty that mortgage rates have stabilised.

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OneAgency can assist with Sales, Lettings and Mortgages. If you would like to chat with someone today, feel free to call us on 01782 970222.

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