Rate cut sparks 23% increase in property stock
Across Britain, the number of home sellers entering the market has increased in the last two weeks. This follows the Bank of England’s decision to cut interest rates from 5.25% to 5%.
Jukes Estate Agents Harlow (https://jukesestates.co.uk//new/public_html/) analysed listings data on the level of for sale stock listed in Harlow (excluding stock listed as sold subject to contract), and how this level of stock changed in the weeks that followed the first interest rate cut since 2020.
The figures show that in the two weeks following the Bank of England’s (https://www.bankofengland.co.uk/ )decision to cut rates, the level of sellers entering the market had surged by 23% in just two weeks.
What is the national picture?
Rate cut sparks 23% increase in property stock
In the first 14 days after the base rate cut we saw: 92,505 properties were listed. This was also a 23% increase on the previous timeframe.
Jukes Estate Agents Harlow’s co owner Geoff Flewers said: “Property market positivity is high. It’s clear that momentum has been building, initially following the election result. However, it has been most notable in the weeks that have followed the decision to cut interest rates for the first time in four years. Although likely interest rate reductions were already factored into mortgage rates, the base rate being reduced has had a huge effect on borrower sentiment. It feels to them as though we’re now through the worst of it.”
He continued: ” Stock levels have risen. However, we are not seeing the levels of buyers rising that much. This is probably because of 2 main factors. 1. We are still in the height of the holiday season and 2. buyers are still working out what the new mortgage rates mean to them.”
” We fully expect buyer levels to rise from 9th September onwards.” he concluded.