Date For General Election Boosts Buyer Confidence

In May we saw a 14% increase in the number of offers being made by house hunters vs April 2024 as the date for the General Election and likelihood of an interest rate cut boosted buyer confidence.

Meanwhile, there were 2% fewer properties available for sale in May vs April as some sellers may have decided to delay putting their property on the market to first observe how a potential new government will impact on the housing market and prices.

Head of Sales Matt Thompson says: “A lot of house hunters have been feeling uncertain amid political and financial developments but, with some concrete changes on their way, became more confident to resume or finalise their property search in May. With an interest rate cut becoming increasingly likely – particularly after the ECB’s announcement to cut rates - we will also see the slow introduction of more attractive mortgage products by lenders. This, in turn, will fuel buyer demand and see asking prices remain stable or slightly increase over the coming months.”

According to the latest Halifax House Price Index for May, published this month, London continues to have the most expensive average property price tag, now at £536,821, up marginally (+0.2%) compared to last year. The report also confirms that while homebuyers and those re-mortgaging will continue to respond to changes in borrowing costs, set against a backdrop of a limited supply of available properties, the market is unlikely to see huge fluctuations in the near term.