Comment on ONS Private Rent and House Price data from Atom bank

18 September 2024

Private Rent and House Price data from the Office for National Statistics (https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/september2024

Richard Harrison, Head of Mortgages at Atom bank, comments:

“There is clear momentum building in the housing market currently. The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold. For example, Rightmove has suggested that the number of interested buyers contacting estate agents is up by 19% compared with a year ago.

“Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers. Moneyfacts data shows that average interest rates for two- and five-year fixed rates have fallen for two straight months, a trend that borrowers will hope to see continue.

“September marks the two-year anniversary of the ill-fated mini-Budget, an excellent reminder of the devastating impact the political world can have on mortgage rates and the housing market. With the Budget due next month, I hope the new Government is thinking carefully about how it can positively shape the prospects for homebuyers and homeowners in the years ahead, particularly first-time buyers. The housing ladder can only function if people are able to get onto that first rung.”