UK interest rate cut boosts house market activities: Rightmove

LONDON, Aug. 19 (Xinhua) — The first interest rate cut in four years has led to an immediate upturn in house market activities in the United Kingdom (UK), the online real estate company Rightmove said on Monday.
The Bank of England (BoE) cut the benchmark rate by 0.25 percentage points to 5 percent on Aug. 1. Since then, the number of potential buyers contacting estate agents about homes for sale has increased 19 percent compared to the same time a year ago, Rightmove said.
Its data showed that buyers’ contacts in July were also up 11 percent from the previous year.
The first rate cut since the COVID-19 pandemic has helped to “accelerate mortgage rate drops and contributed significantly to improved buyer demand,” said the company.
Rightmove has raised its 2024 forecast from -1 percent to 1 percent due to the positive market data and trends, compared to the much more subdued 2023.
“While mortgage rates aren’t yet substantially lower since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment,” said Tim Bannister, Rightmove’s director of property science.
However, Bannister warned that interest rates are still very high compared to a few years ago, and some buyers might need to wait for more rate cuts before affordability is notably improved. ■