Good news for anyone buying or selling a house – the market is looking brighter! The latest figures show that the number of homes being bought and sold has gone up for five months straight, giving a much-needed boost to the property market.

The official data from HMRC (the taxman!) shows that in May, there were 91,290 residential property transactions in the UK. That’s a 17% increase from May last year. This follows a trend of rising sales every month since the start of 2023.

Experts Hopeful After Interest Rate Cut Hopes

So, why are things looking up? Experts reckon it’s partly down to some mortgage lenders cutting the interest rates on their fixed-rate deals. This makes mortgages cheaper for those looking to buy a new home.

Mark Harris, at SPF Private Clients, says this is good news but warns that these rate cuts might not last. He thinks we need the Bank of England to start cutting interest rates for things to really improve.

Interest Rate Cut Still On The Cards?

The Bank of England’s base interest rate has stayed put at 5.25% since last August. That’s the highest it’s been in 16 years, and it makes mortgages more expensive.

Although experts initially predicted a rate cut in spring, many now believe the Bank of England will hold off until November.

House Prices Set To Rise?

Despite the uncertainty over interest rates, there are other signs that the market is hotting up. Rightmove, the property website, says that strong buyer demand is pushing up house prices in some parts of the country, particularly in more affordable areas and in the North.

Election Year No Deterrent For Buyers

Even the upcoming general election doesn’t seem to be putting people off buying or selling. Sanjay Gadhia from Standard Life Home Finance reckons the market is strong enough to ride out any uncertainty caused by the election.

A Word Of Warning For Buyers

But it’s not all sunshine and roses. Ben Waugh from More2life warns that while it’s great to see people getting on the property ladder, some buyers might be stretching themselves too thin financially. He’s concerned that people are taking out mortgages over 30 years or more to cope with high house prices and low wage growth. This could lead to problems down the line, especially when it comes to paying off their mortgage in retirement.

His advice? Get professional financial advice to make sure you’re making the right decisions for your circumstances.