Good news for sellers as Rightmove data reveals a surge in agreed house sales, fuelled by hopes of interest rate cuts. Could this be the perfect time to sell?

The property market is showing signs of hotting up, with the number of agreed house sales jumping by a significant 15% compared to the same period last year. This rise, according to property giant Rightmove, comes as eager buyers hold their breath for potential interest rate cuts as early as August.

Despite distractions from the recent general election and the excitement of Euro 2024, homebuyers have remained focused, keeping transactions significantly above last year’s levels.

While the average UK house price dipped slightly by 0.4% to £373,493 (a drop of £1,617), the South East experienced a more noticeable 2% decrease.

This positive trend in sales, now deemed “encouraging” by Rightmove, offers a stark contrast to the same period last year when the market grappled with the peak of mortgage rates.

The anticipation stems from the Bank of England’s potential decision on interest rates. A cut from the current 5.25% could be a game changer for buyers, making mortgages more affordable and boosting confidence in the market.

Adding fuel to the fire, several major lenders, including Halifax and Barclays, have already slashed their mortgage rates, sparking speculation of a rate war. This comes hot on the heels of similar moves by NatWest and HSBC.

Experts believe cheaper mortgages will empower buyers, potentially pushing some five-year fixed-rate mortgages below 4% by year-end.

While the average five-year fixed-rate currently stands at 4.97%, down from July 2023’s peak of 6.11%, it remains significantly higher than the 2.51% offered back in July 2021.

Rightmove’s Tim Bannister suggests that an interest rate cut, coupled with the newfound political stability, could pave the way for a buoyant autumn market. This combination, he believes, would improve affordability and boost confidence in the latter half of the year.

So, is now the time to make your move? With buyers eagerly awaiting potential rate cuts and lenders already slashing mortgage rates, the property market seems poised for an exciting autumn.