Chestertons Sales and Lettings Report - Q2 2024

The Bank of England reduced interest rates from 5.25% to 5% in August, following a period of stable inflation around the Bank’s target rate of 2%.

This move has lowered mortgage rates, some are now under 4%, and coincides with a new Labour government that plans significant reforms in housing, including the abolition of Section 21 evictions and strengthening renters’ rights.

London house prices have been declining for two years, with a -0.9% decrease between March and May 2024, and a -3.0% fall over the past 12 months.

This trend is driven by higher interest rates increasing the cost of purchasing and refinancing, leading to more properties being listed for sale.