The majority of estate agents expect a summer interest rate cut to help revitalise buyer market activity, however, they remain split as to whether this will help drive up house prices, research suggests.
A survey of more than 600 agents, commissioned by GetAgent, found that while 31% have seen an increase in buyer enquiries so far this year versus last year, 34% have observed the same level of market activity, while 35% have seen a reduction.
The majority (85%) of those surveyed believe that its higher mortgage rates that have dampened buyer market activity, with 79% stating that the issue has persisted due to the Bank of England’s decision to keep rates held at 5.25%.
The research found that 83% of agents believe that when rates do come down, more buyers will be enticed back to the market,while 82% also stated that a rate cut would help spur more buyers into making offers on properties.
But when it comes to the price they are willing to pay, agents remain split.
Half believe that more buyers will offer a higher percentage of asking price compared to the current market if rates do come down, with 48% believing that they will continue to offer the same.
Colby Short, chief executive of GetAgent, said: “Transactions so far this year have been at their lowest levels since 2013. The number of listings has remained quite high but properties have not been selling at the rate they have over recent years.
“This has been a double serving of trouble for agents as they have had to pay to acquire the same number of listings, pay for photos, pay to market the properties but are not generating the same revenue.
“It’s great to finally see light at the end of the tunnel. May’s transaction numbers increased year on year and, with inflation falling, cheaper lending appears to be on the horizon. It can’t come fast enough for the property industry.”
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Ever heard of the economics of demand and supply? It’s not just about whether more buyers come forward but also does it outstrip the supply. If they want to make offers but there’s plenty of buyers then they will soon learn that the offers aren’t accepted. There are plenty of buyers out there now interestingly, and the prices seem to be in equilibrium with not much movement either way. Nice market to be buying and selling in. A small drop by the end of the year to 4.5% should keep the market on an even keel. This is not high. The average base rate from 1971 to 2024 is over 7%. It’s only been so low for the last 15 years because of horrendous bank trading in 2004-2007. We just need to get used to the new norm and it will probably mean prices stay fairly flat for a few years while wages catch up and rents become more reasonable relatively. We absolutely NEED price to wage ratio to be much lower so youngsters can get on the property ladder and lenders can start lending 95-100% mortgages again.
Ever heard of the economics of demand and supply? It’s not just about whether more buyers come forward but also does it outstrip the supply. If they want to make offers but there’s plenty of buyers then they will soon learn that the offers aren’t accepted. There are plenty of buyers out there now interestingly, and the prices seem to be in equilibrium with not much movement either way. Nice market to be buying and selling in. A small drop by the end of the year to 4.5% should keep the market on an even keel. This is not high. The average base rate from 1971 to 2024 is over 7%. It’s only been so low for the last 15 years because of horrendous bank trading in 2004-2007. We just need to get used to the new norm and it will probably mean prices stay fairly flat for a few years while wages catch up and rents become more reasonable relatively. We absolutely NEED price to wage ratio to be much lower so youngsters can get on the property ladder and lenders can start lending 95-100% mortgages again.
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