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17th July 2023
5 minutes

Buyer demand remains resilient despite Bank of England rate rise

Buyer demand in the UK property market remains resilient despite the most recent increase in the base rate announced by the Bank of England, Rightmove reports, as although the number of sales agreed is below the normal market rate, buyer demand is still 3% higher than the normal market rate of 2019.

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According to Rightmove’s most recent House Price Index released earlier today, buyer demand in the UK property market is remaining resilient despite the disruption to the market caused by unstable mortgage rates and the Bank of England announcing another base rate increase. Agents across the country are also reporting that buyers are still motivated to purchase due to a shortage of property for sale compared to the historic norm at this point of the year, while mortgage rates are averaging at 5.69% - 0.20% behind the peak in October following the mini-Budget.

Pricing trends in the market have proved more reliable than most predicted during the first half of the year, with the average asking price for a property in the UK now 2.6% higher than it was in January – a 0.5% increase on the previous year.

“Buyer demand remains resilient at 3% above 2019’s more normal market levels, buoyed by a shortage of quality property for sale and ongoing housing needs. First-time buyers, trader-uppers and downsizers with higher deposits and lower mortgage requirements appear to be still keenly searching the market, not wanting to miss out on the right property that is not over-priced and that they can still afford.” Tim Bannister, Director of Property Science at Rightmove.

Despite the average number of sales agreed per month declining, there is still a significant shortage of property available for sale according to Rightmove’s agents, with an average 12% less than at the same time during the normal market level of 2019. Agents have also reported that even with the current market challenges, properties are still attracting strong interest from motivated buyers who are keen to purchase and move.

“There remains a large volume of motivated buyers who can factor rate rises into their budgets and are continuing to enquire about homes for sale, which is keeping the market functioning, albeit now with lower sales levels than at this time in 2019.” Tim Bannister, Director of Property Science at Rightmove.

Rightmove has also reported a year-on-year increase of +1.9% in property value in the North West – the highest year-on-year increase in England – while prices in London have fallen by -0.6% over the last year.

At Beech Holdings we have also experienced an influx in property enquiries from both owner occupiers and investors looking to relocate their properties away from the capital and into a much more secure market such as Manchester and the surrounding areas.

To learn more about the current state of the UK property market and understand further how you can invest in the market with the highest capital growth, get in touch with our team today or contact them direct at +44 161 791 4600.

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