Interest rates cut hopes as Bank of England plunge could spark home-buying spree
First time buyer numbers fell last year to their lowest number since 2013 and one in three agents say buyer interest is even lower so far this year.
Zoopla expert predicts house prices will fall by 22% by 2026
Estate agents are banking on a summer interest rates cut to breathe life into the property market that has seen a slump in the number of sales.
First time buyer numbers fell last year to their lowest number since 2013 and one in three agents say buyer interest is even lower so far this year.
At the same time, the number of mortgages offered to home movers crashed to a 50 year low of 251,000 last year with high home loan costs continuing to dampen sales.
New research across 600 agents found evidence of a mixed market with 35 per cent reporting lower buyer interest than a year ago and 34 percent reporting no change.
Just 31 percent have seen an increase in buyer enquiries so far this year, according to the research by GetAgent.
Some 85 percent of those surveyed believe that higher mortgage rates have dampened buyer market activity, with 79 percent laying the blame at the feet of the Bank of England.
The Bank's Monetary Policy Committee has held the base rate at 5.25 percent despite the fact inflation has fallen to its lowest level in almost three years and, at 2.3 percent, sits close to the Bank of England’s target rate of 2 percent.
Some 83 percent of estate agents believe buyers will be enticed back to the market once rate cuts take effect. And 82 percent also stated that a rate cut would help spur more buyers into making offers on properties.
However, when it comes to the price they are willing to pay, agents remain split. Some 52 percent believe the rise in buyers means higher prices while 48 percent expect no change.
