London estate agency Chestertons reports that the prospect of further rises in mortgage rates is prompting property buyers to take action. In February, they observed an 18% increase in property sales compared to January.
Several mortgage lenders have raised rates for their five-year fixed-term mortgages, with the average rate now at 5.47%. This marks a 0.07% increase since the start of March and a significant difference from the 3.94% average in December 2023.
The latest Monetary Policy Report from the Bank of England indicates that interest rates are unlikely to be cut until at least the second half of the year.
However, this rise in sales is also indicative of the annual spring bounce, when activity picks up in the property market. This recent data shows that mortgage rates are considerably better than in 2023, as mortgage lenders dropped rates following multiple declines in inflation. This has led many investors to resume their activities in the market despite rates remaining elevated from their levels in 2022.
This news follows a recent Getagent.co.uk study that showed the average seller is achieving 96.7% of their asking price. When sellers achieve higher figures, typically, more buyers will seek properties, indicating a healthier market. Interestingly, the North West achieves, on average, 97.4% of asking prices.
This points to an active market in the North West, which is hardly surprising considering Savills earmarked the region to see 9.2% returns in the buy-to-let sector this year.
See More: If you’d like to know more about North West property investment, see our page on new-build Liverpool properties and Manchester property investment.
