Autumn Set to Deliver a Boost to the UK Housing Market
As September gets underway, the property market picks up pace.
Historically, transitioning from summer into autumn has usually marked a slowdown of the housing market, as parents return to school routines and the drab weather dampens moving dreams. However, this year, the UK property market has seen more activity as autumn slowly approaches. According to the experts, there are more people considering – and actively – moving this season.
There are a few reasons why there’s been an uptick in buying and selling activity. Firstly, the election is done and dusted, and we have a new government. In addition, the Bank of England dropped the base rate in August – albeit slightly, but a drop nonetheless. That sparked big mortgage lenders to reduce rates. And, while all that’s been going on, house prices have been holding steady.
Base rate cuts
In August, there was the first base rate cut in over four years. Previously, it was increasing since December 2021, and then holding steady at 5.25%. But last month, the Bank of England chose to drop the interest rate to 5%. There’s another announcement due on the 19th of September as we all hold our collective breath to see whether they choose to remain at 5% or cut further. Check back here then - we'll have all the news, whatever the outcome.
A competitive landscape
We’re heading in the right direction, and that seems to be enough for the mortgage lenders to offer more competitive rates. Mortgage rates could continue to decrease. While we’re not expecting 1-2% offers, it could be far better than what we’ve seen recently.
With financial and political stability baked into the last few weeks, there have been more would-be sellers getting house valuations and choosing to list their homes on the market.
And house prices
UK house prices have held steady due to a weak supply colliding with high demand. Affordability remains one of the main barriers to entry, however. According to the Office for National Statistics, the average home in England now costs more than 8 times the average annual wage, up from 3.5 times in 1997. If you’re curious about the value of houses in your region - so you know roughly what you can afford - have a gander at our handy House Price Index tool.
Is autumn calling you?
So, as you pull out the thick jumpers and waterproof boots this season, you may be pleasantly surprised to hear that your home move may still be on the cards for this year. As mortgage rates ease and home mover confidence increases, now makes a good time to buy or sell your house.