August House Sales Up On Last Year

August 2024 saw a 5% increase in house sales compared to last year, driven by lower mortgage rates and improving buyer confidence.

House sales in the UK were 5% higher in August 2024 compared to the same month in 2023, according to figures from HM Revenue & Customs (HMRC). An estimated 90,210 homes were sold across the UK, reflecting this increase, though the number was slightly down—by less than 1%—from July 2024.

The housing market’s resurgence has been aided by recent reductions in mortgage rates as the autumn season begins. Several mortgage lenders have cut rates, helping to boost buyer confidence. 

The reduction in inflation and the Bank of England’s cautious lowering of interest rates have contributed to the improved market conditions. Iain McKenzie, chief executive of the Guild of Property Professionals, highlighted the progress made by the Bank of England in managing inflation, which has led to better borrowing conditions. He anticipates this trend will continue throughout the remainder of 2024.

Andrew Lloyd, managing director of Search Acumen, a property data insights provider, emphasised that homebuyers are eager to take advantage of these more favourable mortgage rates. Nicky Stevenson, managing director at Fine & Country estate agents, agreed, noting that lower interest rates result in reduced monthly mortgage payments. This gives buyers more flexibility in their budgets, enabling them to consider higher-priced homes, which could lead to further market activity.

Despite these positive signs, affordability remains a challenge for some buyers. Jason Tebb, president of OnTheMarket, warned that while falling mortgage rates have improved buyer sentiment, sellers need to be realistic about pricing, especially if they aim to sell before the year ends.

Overall, the housing market shows signs of resilience, supported by stabilising interest rates and improved mortgage offers, though affordability concerns may temper the rate of sales growth.

Articles on this website are offered only for general informational and educational purposes. They are not offered as and do not constitute financial advice. Clarus Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd which is authorised and regulated by the Financial Conduct Authority. Clarus Wealth Ltd is entered on the Financial Services Register (http://www.fsa.gov.uk/register/) under reference 581586. The guidance and information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service, please visit www.financial-ombudsman.org.uk.

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