Financial News: UK House Prices Rise On Bank Of England

UK House Prices Rise On Bank Of England Rate Cut: Rightmove

(RTTNews) - UK house prices increased in September as the traditionally busier Autumn market started early after the Bank of England's interest rate cut lowered mortgage rates and the election results boosted confidence, data published by the property website Rightmove showed Monday.

House prices grew 0.8 percent on a monthly basis in September, in contrast to the 1.5 percent decrease in August.

On a yearly basis, house price growth accelerated to 1.2 percent from 0.8 percent in August.

Rightmove said September usually sees a monthly rise in prices, but this year's increase is double the long-term average, with prices supported by increased activity levels.

However, the agency cautioned that the market remains cautious with pricing right still key for a successful sale.

"The certainty of a new government followed by the first Bank Rate cut in four years invigorated the market, opening a window of opportunity for movers to act," Rightmove's Director of Property Science Tim Bannister said.

"Some of this will be pent-up demand from those who had to hit the pause button until now," said Bannister.

"However, windows of opportunity tend to need a momentum of good news to stay open, and there are still uncertainties ahead which could cause some of the current market activity to ease," he added.

The number of sales being agreed between buyers and sellers was up 27 percent compared to the same time in 2023. The number of potential buyers contacting agents also grew 15 percent.

Moreover, at 33 homes, the average number of available homes for sale per estate agency branch was at its highest since 2014.

Nonetheless, the average property is taking 60 days to find a buyer, which is three days longer than at this time last year even with better market conditions, suggesting that buyers are value conscious.

Further, Rightmove said there are still some uncertainties ahead, with all eyes initially on whether the Bank of England decides to opt for a second consecutive rate cut later this week.

In August, the <a href=https://www.rttnews.com/3465360/bank-of-england-cuts-rate-for-first-time-since-2020.aspx?refresh=1 target=_blank >BoE</a> had lowered its benchmark rate for the first time since March 2020. The bank had reduced the rate by a quarter-point to 5.00 percent. The next policy announcement is due on September 19.

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