UK house sales surge at the fastest rate in three years

UK house sales saw a significant rise in September, marking the fastest rate of growth since the post-lockdown period. Lower mortgage rates fueled an increase in demand, with the number of sales agreed in the four weeks leading to September 21 rising by 25% compared to the previous year, the highest since spring 2021, according to recent data from Zoopla.

Buyer inquiries also surged by 26% during the same period, the fastest pace in over three years. The dip in mortgage rates, now at their lowest in more than a year, has given a boost to market confidence, particularly among homeowners who had been hesitant to act.

Zoopla's executive director, Richard Donnell, snoted that lower mortgage rates are boosting homeowner confidence, increasing market activity. Tax change speculation is also driving more homes for sale, helping to keep house prices steady into 2025.

Zoopla reports increased buyer demand in September driven by lower interest rates.

This positive trend follows a broader recovery in the UK property market, as mortgage approvals in August reached their highest level in two years. The average two-year fixed mortgage rate with a 60% loan-to-value fell to 4.7% in August, down from 4.9% the previous month and significantly lower than the peak of 6.4% in 2022.

Experts predict that with further reductions in swap rates, mortgage rates may continue to decline, potentially leading to house price growth next year. Additionally, there has been a notable rise in the number of new properties coming onto the market, with supply growth particularly strong in rural and coastal areas. This has been partly attributed to speculation around potential tax changes, particularly for second homeowners.

With these factors in play, areas like Cornwall could see increased interest from house-hunters who have been previously priced out.

Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.