Despite initial concerns that the General Election campaign might cause a significant slowdown in home-moving activity, Rightmove's extensive data reveals that the majority of people have been continuing with their plans since the election was announced. The certainty of having a new government in place is likely to bolster home-mover confidence as we move into the second half of the year. However, a pressing concern for home-buyers remains: when will the first interest rate cut occur, as persistently high mortgage rates continue to challenge affordability.

Encouraging Trends in Home Sales

Rightmove's data shows a promising 15% increase in the number of sales agreed upon compared to the same period last year, a substantial improvement from last month's figure, which was 6% above the previous year. This positive trend underscores that serious home-hunters have been largely undeterred by the General Election and are actively proceeding with their moves.

DB Roberts have seen an impressive 20% increase in sales agreed compared to the first 6 months in 2023. This growth further illustrates a strong market performance and highlights the confidence buyers and sellers have in continuing their transactions.

Steady Flow of New Sellers

In addition to the increase in sales, the number of new sellers entering the market in the past four weeks has been 3% higher than last year. This steady flow indicates that the uncertainty surrounding the election has not significantly discouraged the majority of movers.

Stable Buyer Demand

Buyer demand, measured by the number of prospective buyers contacting estate agents about homes for sale, has remained stable over the last four weeks compared to the same period last year. This stability suggests that the market's underlying demand remains robust.

Outlook on Interest Rates

A significant factor for home-movers is the anticipated timing of the first Base Rate cut. Financial markets currently expect this cut to occur in August or September, although this could change in the coming weeks. Such a cut would likely boost market sentiment and provide a much-needed lift for home-movers.

Rightmove’s weekly mortgage tracker indicates that the average five-year fixed rate has decreased to 4.97%, down from the peak of 6.11% in July 2023. This improvement, although gradual, is a positive sign for those looking to secure more affordable mortgage options.

Top Tip:  For tailored advice on how these changes might impact your mortgage options, consider speaking with our in-house mortgage advisors. They can provide expert guidance on navigating the current market conditions and help you find the best mortgage solution for your needs. Their insights will be invaluable as you plan your next move.

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