August 2024 could go down as a pivotal month for the property market, according to Knight Frank.
Reacting to the latest Rightmove house price index, which has reported an upturn in market activity, the agency is predicting improved performance in autumn this year.
Tom Bill, head of UK residential research at Knight Frank, said: “Despite being a quiet time for the UK housing market, August could prove to be a pivotal month this year following a rate cut and better-than-expected inflation numbers.
“Markets are pricing in a further cut in 2024, which means transaction volumes should be stronger this autumn than last year.”
Bill added: “That said, uncertainty surrounding the Budget and wave of people rolling off favourable mortgage deals will keep a lid on price growth, which we expect to be 3% in the UK this year.”
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‘Fairly active’
Gareth Overton, head of residential sales at Henry Adams, said:
“The summer property market has remained fairly active, with increased stability providing a solid foundation for continued strong sales based on buyer confidence. The much-anticipated election outcome caused few ripples, with only a slight dip in viewings as the holiday season began.
“However, as the Autumn Budget approaches, we may see more significant changes, particularly among buy-to-let landlords who are closely monitoring potential capital gains tax implications.
“In areas such as Chichester, Midhurst and Bognor Regis, the current sales market is particularly active and we have seen a noticeable increase in enquiries from downsizers across the board.
“While August is generally a slightly quieter month due to the holiday season, the market continues to show resilience and is ticking over steadily. The Bank of England Base Rate appears to have had a positive impact on home-mover sentiment.
“Underlying demand remains positive and we expect activity to gather pace in line with the traditional seasonal fluctuations as we move into the autumn months.”
‘Market resilience’
Gary Hamilton, founder of Bohome Estate Agents in Hamilton, said:
“July was a strong month for us, reflecting the resilience of our market. We’ve seen a mix of outcomes, with some properties achieving well above the expected price whereas others sold closer to it.
“This underscores how crucial it is for sellers to set realistic and competitive prices in today’s market, as getting the price right is key to attracting strong buyer interest.
“With schools returning and routines normalising, we expect activity to pick up further in the coming weeks. The stability we’ve observed in July positions us well for continued growth into the autumn.”
‘Warming up nicely’
Josephine Ashby, managing partner at John Bray Estate Agents in Cornwall, said:
“The market in North Cornwall is warming up nicely to coincide with the long overdue return of sunshine. There is no doubt that activity slowed in the build-up to the general election despite a result that was no great surprise to the country. With the election now behind us we are seeing an improvement in buyer engagement as more certainty in the political and economic landscapes forms.
“There is a substantial increase in properties for sale across the area giving buyers an extremely good level of choice and time to reflect on the best opportunities. There are some spectacular instructions available, some representing true ‘once in a lifetime’ opportunities so focused buyers who know what they want can really find something very special.”