{"id":23774,"date":"2024-09-03T07:45:00","date_gmt":"2024-09-03T06:45:00","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=23774"},"modified":"2025-02-05T05:37:56","modified_gmt":"2025-02-05T05:37:56","slug":"interest-rate-cut-boosts-housing-market-activity","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/london-property-market\/interest-rate-cut-boosts-housing-market-activity\/","title":{"rendered":"Interest rate cut immediately boosts housing market activity"},"content":{"rendered":"

There\u2019s good news for the housing market this month, following the recent Bank of England 0.25% interest rate cut to 5% – the first reduction in four years. This has immediately boosted demand, creating real momentum in the market, and as a result, we should see increasing buyer activity in the autumn. <\/p>\n

\"Interest<\/p>\n

The interest rate cut, although small, has already led to lower mortgage rates, prompting increasing interest from buyers who had been delaying their property purchase as affordability was stretched. <\/p>\n

According to Rightmove, the number of potential buyers contacting estate agents has jumped from 11% up on the prior year across the month of July, to 19% up since August 1st compared to the same time a year ago.<\/p>\n

Rightmove also reports that the number of sales being agreed is now 16% ahead of the near-peak-mortgage-rate period of a year ago. And the number of new sellers coming to market is 5% ahead of last year as confidence grows.<\/p>\n

An uptick in sales enquiries<\/h2>\n

Here at Benham & Reeves<\/a>, we\u2019ve seen the interest rate cut have an immediate impact on enquiries. While the summer months tend to be quieter as families take their annual holiday, as we move into September, we are already seeing a significant increase in interest. <\/p>\n

Perhaps even more importantly, we\u2019re seeing greater confidence amongst buyers than at this time last year when interest rates and inflation were higher. <\/p>\n

We believe enquiry levels will continue to grow as we move into autumn and, although the interest rate reduction is marginal, it signals the start of a more stable housing market and therefore greater certainty for buyers. <\/p>\n

With mortgage rates expected to fall further, and inflation now much lower at 2.2% (although this rose slightly in July), this is a gamechanger for anyone held back by higher mortgage costs and the cost of living. <\/p>\n

UK house prices rise for fifth consecutive month<\/h2>\n

\"UK<\/p>\n

And house prices across the UK<\/a> rose for the fifth consecutive month in June, according to data from the ONS (Office for National Statistics).<\/p>\n

This shows that the UK property market is bouncing back from the period of low growth caused by higher mortgage rates. With interest rates falling, we expect to see strong growth in the coming months, boosting buyer activity and property values.<\/p>\n

Directors Anita and Marc to visit Asia in September <\/h2>\n

\"Directors<\/p>\n

Our directors, Anita Mehra and Marc von Grundherr, will be visiting Asia, including Malaysia, Doha, Bangkok and Singapore, in September to meet clients and offer insights into the London property market<\/a>, including updates on current trends, future growth areas and bespoke advice.<\/p>\n

They will be in Doha on 18th and 19th September, Kuala Lumpur from 19th to 23rd September, Bangkok from 23rd<\/a> to 26th September and Singapore from 26th September to 1st October<\/a>. <\/p>\n

Please contact your local office to book a private appointment.<\/p>\n

Steady flow of international buyers through our overseas property events<\/h2>\n

\"International<\/p>\n

We continue to work with a steady flow of international buyers, getting to know them initially at our overseas property events<\/a> which are extremely popular. <\/p>\n

Clients from India and Indonesia visit London<\/h2>\n

\"Indian<\/p>\n

Our India<\/a> and Indonesia<\/a> teams have been accompanying clients to London over the summer, visiting the city\u2019s best residential developments, hand-picked to meet their investment criteria.<\/p>\n

They\u2019ve also had the opportunity to meet top UK developers<\/a>, gaining valuable insights into London property investment. Having researched the market with our teams, many are now purchasing units tailored to their investment objectives.<\/p>\n

Bangkok team showcase London Square Earlsfield and London Square Nine Elms<\/h2>\n

\"London<\/p>\n

Our Bangkok office<\/a> is showcasing London Square Earlsfield and London Square Nine Elms, two outstanding developments in South-West and South London, offering excellent investment opportunities in prime locations.<\/p>\n

Find out more information about our upcoming showcase here<\/a>.<\/p>\n

Marc and Anita are visiting Bangkok later in September, so please call our Bangkok office to book a private consultation with them to discuss these or other opportunities.<\/p>\n

Singapore office holds property event featuring prime UAE developments<\/h2>\n

\"UAE<\/p>\n

With global connectivity, world-class healthcare and the attractive UAE Golden Visa Scheme, the United Arab Emirates is a popular location for expat executives and so has a fast-growing property market. <\/p>\n

Our Singapore office will be showcasing exciting new developments by top UAE developer Aldar Properties in September in Abu Dhabi, Ras Al Khaimah and Dubai. <\/p>\n

The UAE Properties Event takes place on 7th and 8th September in Singapore<\/a>. <\/p>\n

Anita and Marc will also be visiting Singapore in September.<\/p>\n

To book your place at either event, please contact our Singapore office<\/a>.<\/p>\n

Hong Kong team highlight Royal Gateway in North Acton<\/h2>\n

\"Hong<\/p>\n

Our Hong Kong team recently visited Taiwan<\/a>, showcasing Royal Gateway in North Acton (Borough of Ealing), from Barratt London, part of a \u00a326 billion regeneration scheme with 26,500 new homes and excellent connectivity to central London and Heathrow Airport.<\/p>\n

The team will also be highlighting the latest phase of White City Living, The Solaris, at Berkeley\u2019s Hong Kong office on 14th and 15th September. <\/p>\n

Register your interest<\/a> with our Hong Kong team today!<\/p>\n

Malaysia office focuses on high yield Zone 2 developments <\/h2>\n

\"Malaysia<\/p>\n

During Anita and Marc\u2019s trip to Kuala Lumpur, we will be launching the latest phase of White City Living, The Solaris, in Malaysia. Finance director Vidhur will be joining Anita and Marc, presenting a seminar on \u2018Top Tips to Save Tax if You Are Buying a Property in London.\u2019<\/p>\n

To book your place at the event, on 21st and 22nd September, call our Kuala Lumpur office.<\/p>\n

Our Malaysia team also highlighted Zone 2 developments offering excellent transport links and high yields of up to 6.4% at their recent showcase in Kuala Lumpur. The featured developments have commutes of a maximum of 6 minutes\u2019 walk to a station and a 10 minute commute to central London.<\/p>\n

Prices start at \u00a3425,000 and apartments offer excellent value for money, with stable and high returns. Learn more about our featured Zone 2 developments here<\/a>.<\/p>\n

Fierce competition for London rental homes <\/h2>\n

\"London<\/p>\n

We continue to see strong competition for rental homes in London<\/a>, with our 21 London branches receiving over double the enquiries they were recording per property in July 2019. <\/p>\n

Demand from international students is high and we have waiting lists of applicants ready to move quickly. Most are looking for apartments in a residential development near their university, ideally with a concierge to provide security and assistance if needed. <\/p>\n

Our Japan desk<\/a> has also been extremely busy, finding homes for corporate clients with generous accommodation budgets.<\/p>\n

With demand high, our landlords are achieving strong rental income so please contact your local branch for a free rental valuation<\/a>.<\/p>\n

Rent inflation remains high<\/h2>\n

According to the Office for National Statistics, average UK private rents increased by 8.6% in the 12 months to July 2024, unchanged from the 12 months to June 2024.<\/p>\n

London saw the highest rent inflation in the 12 months to July 2024, at 9.7%. This was unchanged from the 12 months to June 2024 and was below the record-high annual rise of 11.2 % in March 2024.<\/p>\n

Contact Benham & Reeves if you are buying, selling or renting a London property<\/h2>\n

Contact your nearest branch of Benham & Reeves<\/a> branch if you are buying, selling or renting a London property.<\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s good news for the housing market this month, following the recent Bank of England 0.25% interest rate cut to 5% – the first reduction in four years. This has immediately boosted demand, creating real momentum in the market, and as a result, we should see increasing buyer activity in the autumn. <\/p>\n","protected":false},"author":1,"featured_media":23775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[451],"tags":[],"class_list":["post-23774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-london-property-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/23774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=23774"}],"version-history":[{"count":3,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/23774\/revisions"}],"predecessor-version":[{"id":24909,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/23774\/revisions\/24909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/23775"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=23774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=23774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=23774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}