House sales were 5 per cent higher in August than in the same month the previous year, according to HM Revenue and Customs (HMRC) figures.
Across the UK, an estimated 90,210 homes were sold, marking a 5 per cent increase compared with August 2023 and slightly lower (less than 1 per cent) than in July 2024.
Several mortgage lenders have been cutting their rates in recent weeks as the autumn market gets under way.
Holly Tomlinson, a financial planner at wealth manager Quilter said: “The year-on-year increase (in property sales) highlights that the housing market has rebounded, as persistent inflation and interest rate pressures ease somewhat.
“Buyers are now better equipped to navigate these challenges, supported by a stabilising mortgage market, particularly as more 4 per cent mortgage deals come into play and a realisation that rates are unlikely to get down to anything like the levels enjoyed pre and during the pandemic.”
While falling mortgage rates are improving confidence, affordability remains an issue and sellers must price realistically
Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The Bank of England has made some cautious progress in lowering interest rates as a result of falling inflation levels in the past year. It is anticipated that it will continue to be much of the same as the year comes to a close.”
Andrew Lloyd, managing director at property data insights provider Search Acumen, said the figures indicate that “homebuyers are keen to capitalise on more favourable borrowing conditions”.
Nicky Stevenson, managing director at estate agent group Fine & Country, said: “Lower interest rates translate to reduced monthly mortgage payments, which should attract buyers back into the market. This change offers greater flexibility in their budgets and the opportunity to consider higher-priced homes.”
Jason Tebb, president of OnTheMarket said: “While falling mortgage rates are improving confidence, affordability remains an issue and sellers must price realistically, particularly if they are keen to move before the end of the year.”
Phil Lawford, National Account Manager at Saffron for Intermediaries: “It is just over a month since the Bank of England cut the base rate for the first time in four years, and while this hasn’t yet translated into increased transactions, there is a lot to be happy about in the mortgage market. Confidence has steadily been increasing as rates drop to their lowest levels in six months, inflation remains steady, and the supply of properties is growing. Two years on from the disastrous ‘mini-budget’, the market has come a long way and brokers and lenders can look forward to a busier Q4 going into 2025.
“While affordability is improving, rates are not going to fall to the record lows that we experienced over the last decade, and so it is more important than ever that borrowers consult a professional adviser to find the right product for their needs. At Saffron, we pride ourselves on embracing different, and look to find solutions for borrowers with a diverse range of circumstances.”
