Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Estate agents’ books fill up as mortgage rates drop, easing pressure on house prices

by October 21, 2024
October 21, 2024
Estate agents’ books fill up as mortgage rates drop, easing pressure on house prices

The UK housing market is seeing a shift as estate agents report the highest number of homes on their books in over a decade, helping to stabilise house prices.

Data from Rightmove, the property search website, reveals that branches across Britain are marketing an average of 63 homes, marking a 12% increase from the same time last year and the most since 2014.

During the pandemic’s “race for space,” housing stock was scarce, with agents often having fewer than 40 properties listed at any one time. This shortage, combined with heightened demand and stamp duty holidays, drove house prices to unprecedented levels. Now, however, an increase in available homes is giving buyers more negotiating power and helping to slow price growth.

In October, the average asking price for new listings on Rightmove rose by just 0.3%, to £371,958. This is significantly lower than the usual 1.3% increase typically seen during the busy autumn months when many buyers return to the market after the school holidays.

Tim Bannister, head of property data at Rightmove, commented: “This month’s subdued price growth comes as buyer choice soars to a level not seen since 2014. With the ball in the buyer’s court and a wide selection to choose from, sellers need to price competitively to secure a buyer, especially with affordability still stretched.”

Improving conditions fuel market activity

The growing number of homes for sale is largely driven by falling mortgage rates, which are encouraging potential buyers — many of whom need to sell their current homes — to return to the market. The average five-year fixed mortgage rate has dropped to 4.6%, down from a peak of 6.1% in July 2023, making it more affordable for people to move.

As a result, the number of agreed sales is up 29% compared to this time last year, and estate agents are reporting a 17% increase in inquiries from prospective buyers. This signals a recovery after two years of stagnation, when rapidly rising mortgage rates forced many to delay their plans to buy or move.

Housebuilders have also reported a rise in sales, and estate agents are growing more optimistic about the outlook for the housing market. Rightmove data shows that asking prices have increased by 1% over the past year, with mid-market properties such as three-bedroom homes seeing the largest gains, up by 1.7% year-on-year.

However, at the higher end of the market, prices for larger properties, such as five-bedroom houses and four-bedroom detached homes, have decreased slightly by 0.2%. Bannister noted that some potential buyers at the top of the market are holding off on making a move until they have more clarity about fiscal policy.

Looking ahead: a bright 2025?

Despite the current market uncertainties, Bannister is optimistic about the future, forecasting an “active 2025.” Interest rates are expected to fall further, and wage growth is outpacing house price inflation, improving affordability for many potential buyers.

Bannister anticipates that more certainty following the 30 October budget, along with potential further cuts in bank interest rates, could trigger renewed market optimism, similar to the surge seen during the summer of 2022.

Read more:
Estate agents’ books fill up as mortgage rates drop, easing pressure on house prices

0
FacebookTwitterGoogle +Pinterest
previous post
12 Steps to Improve Road Safety in Your Area
next post
Make UK backs Labour’s industrial strategy, sees surge in investment potential

You may also like

How Lev Mazaraki built a successful travel photography...

January 27, 2025

Farage proposes £250k tax break for non-doms, triggering...

June 24, 2025

Forex Day Trading Strategies for Busy Professionals and...

July 4, 2025

Secrets of Success: Lucy Darch, CEO of Wave

July 31, 2024

Shell puts 2,000 UK jobs at risk with...

January 27, 2023

How fintech financing is plugging the £2.5 billion...

November 15, 2024

Apple announces new security and privacy measures amid...

December 8, 2022

Practical Tips to Learn How to Play Poker

December 20, 2022

How to make your business a success

October 3, 2022

Carpetright Paralysed by Cyberattack: Online and In-Store Trading...

April 23, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House Democrats call on Rubio to allow injured children from Gaza into US following visa halt

      August 27, 2025
    • SkyWater pitches itself as all-American firm as Trump mulls more equity deals following Intel deal

      August 27, 2025
    • 600,000 Chinese Students Would Be a Windfall for the United States

      August 26, 2025
    • EPA urged by state AGs to axe funds for ‘radical’ climate project accused of training judges

      August 26, 2025
    • ‘Doctor Strangelove with a mustache’: Bolton blasted for ‘profiteering’ off US secrets by White House advisor

      August 26, 2025
    • Bolton may be in hot water as FBI investigation expands beyond controversial book

      August 26, 2025

    Categories

    • Business (8,886)
    • Investing (2,242)
    • Politics (16,495)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved