When looking at the economic forces affecting the market, Rightmove states that high mortgage rates are likely to be a bigger driving force than the general election, and future buyers are paying more attention to when the Bank of England’s first rate cut may happen.
The average 5-year fixed mortgage rate is now 5.04%, compared to 4.94% in January. While this is an improvement on the peak of 6.11% in July 2023, many still hope to see significant mortgage rate falls later this year.
Tim Bannister, Rightmove’s Director of Property Science, commented: “It’s always difficult to predict how home-movers will react to sudden uncertainty, but looking back through our data, we can see that during previous election campaigns, market activity has remained largely steady. This election has followed a similar pattern so far, and the responses from our poll of over 14,000 people also support the data, with the vast majority of respondents saying they will carry on with their home-moving plans. However, some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end. This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass market.”
Further Reading: Learn how to get into property investment with our property investment guide.
