On 1 August, the Bank of England reduced the base rate to 5% as predicted by most analysts. The impact on buyer confidence is already clear, with more buyers entering the market over the summer and analysts looking ahead to a busy autumn.

Tim Bannister, Director of Property Science at Rightmove, said: “The first Bank Rate cut since 2020 has sparked a welcome late summer boost in buyer activity… the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment. As the summer holiday season comes to an end, the conditions are there for a more active autumn market.”Jeremy Leaf, a North London estate agent, said that August had been much busier than usual, adding: “There is no doubt the cut in base rate has been a shot in the arm for the housing market, particularly in terms of new enquiries during the traditionally quiet summer period.”

"There is no doubt the cut in base rate has been a shot in the arm for the housing market"

Tom Bill, head of UK residential research at Knight Frank, said he expected there to be “pent-up demand” from buyers that could be released as more mortgage rates fall below the 4% threshold. “Demand is there and it has been building under the surface,” he said, arguing that the snap election had prompted some buyers to delay their moves in June.Separate research published in August by the Royal Institution of Chartered Surveyors (Rics) found that expectations for an increase in house sales over the next few months have reached their strongest levels since shortly before the Covid pandemic.A net balance of 30% of property professionals now expect sales to rise over the next three months rather than fall, the most positive sentiment seen since January 2020.