Zoopla's latest update provides new insights into the national housing market, revealing how lower mortgage rates, currently at their lowest level in 15 months, are driving increased buyer demand.
Compared to this time last year, Zoopla revealed the number of new sales agreed has risen by 25% nationwide, reflecting a notable return of buyers to the market. A key trend emerging from their data is the growing number of chain-free properties, now making up one-third of the houses listed on the site.
Richard Donnell, Executive Director at Zoopla, commented: "Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years. Market activity is up across the board, and the expectation of lower borrowing costs will continue to attract both buyers and sellers."
Meanwhile, financial markets have seen a significant shift in expectations following comments from the Governor of the Bank of England. Andrew Bailey hinted in a recent interview that the Bank might take ‘a bit more aggressive’ approach to interest rates. However, he also noted that this would depend on inflation trends and the potential for oil prices to rise due to instability in the Middle East.
These remarks have led to 98% of market bets favouring an interest rate cut at the Bank’s upcoming meeting on 7th November, a stark contrast to earlier forecasts that anticipated no change.
With mortgage rates falling, house prices steadying and potential changes in interest rates on the horizon, the coming months could present significant opportunities for both buyers and sellers in the housing market.