Halifax forecasts rising property prices for the rest of the year.
Lower mortgage rates and a possible cut in the base rate would drive up asking prices, said Amanda Bryden, head of the bank’s mortgage division.
According to Halifax, the average price rose by £2,200 between June and July, following three months of relatively low inflation, bringing the average price of a house to £291,268.
“The Bank of England’s base rate cut last week, which follows recent cuts in mortgage rates, is encouraging for those planning to remortgage, buy their first home or move further up the property ladder,” Ms Bryden said.
Interest rates were cut from 5.25 percent to 5 percent on Thursday – the first cut in more than four years.
“Against the backdrop of lower mortgage rates and a possible further cut in the base rate, we expect house prices to continue to rise slightly for the rest of the year,” Ms Bryden said.
Holly Tomlinson, financial planner at wealth manager Quilter, expects autumn to be a busier time for the market as undecided sellers are encouraged by the direction of interest rates.
Sam Mitchell, CEO of Purplebricks, agreed: “With lenders already cutting mortgage rates in response to last week’s decision, buyers are starting to make purchase decisions they have been putting off for months.”
