Bank base rate held sets property market for autumn pick-up

Mortgage rates are already falling at the start of autumn following the bank base rate being held at 5.25%. Data from comparison website Moneyfacts shows typical fixed rate mortgages have fallen across the board for the second month in a row. The overall average two- and five-year fixed rates fell between the start of September and the start of October, to 6.47% and 5.97% respectively.

Back-to-school sellers have encouraged activity to pick up helping the number of new properties coming to market to jump by 12% in the first week of September when compared with the average weekly number throughout August says Rightmove in its latest House Price Index.

Declining mortgage rates could help some first-time buyers, and second steppers with seven consecutive weeks of falling mortgage rates. With house prices and mortgage rates falling, and average earnings increasing, we are continuing to take small steps towards improved buyer affordability. Inflation also dropped to 6.7% adding to overall confidence in the market.

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