UK home gross sales rise at quickest tempo in three years, information exhibits | USAEMALL.com

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UK house sales rose in September at the fastest rate since the post-lockdown rebound, as lower mortgage rates fuelled a rise in demand among home buyers, according to data from Zoopla.

The number of sales agreed in the four weeks to September 21 rose by an annual rate of 25 per cent, the sharpest increase since the spring of 2021, when the market rebounded after the first Covid-19 lockdown, research by the property portal showed.

Buyers’ inquiries to estate agents rose by an annual rate of 26 per cent over the same period, marking the fastest pace in more than three years, according to data released on Thursday.

“Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the past two years,” said Richard Donnell, executive director at Zoopla.

Mortgage rates, which are at the lowest level in over a year, are “supporting double-digit growth in all the key measures of sales market activity”, he added.

The figures add to evidence of the recovery of the UK property market as quoted mortgage rates continue to decline.

The latest data from the Bank of England showed that mortgage approvals rose to the highest level in two years in August, while the lender Nationwide reported approvals rising at the fastest pace in two years in September.

The average two-year fixed rate deal — with a 60 per cent loan-to-value — was 4.7 per cent in August, down from 4.9 per cent the previous month. The figure was well below the recent peak of 6.4 per cent reached in August last year, according to BoE data.

Alex Kerr, economist at the consultancy Capital Economics, said further declines in swap rates, which influence mortgage deals, in September suggested there was “scope for mortgage rates to fall further and for house price growth to accelerate next year”.

Zoopla noted a 16 per cent annual increase in new properties coming to the market, and a 12 per cent rise in the stock of homes for sale.

It attributed the trend to “speculation over possible tax changes in the Budget with investors, second homeowners and others with multiple homes considering selling”.

Supply growth was particularly strong in coastal and rural areas, where possible tax changes in the Budget are coupled with many English councils planning to double council tax for second homes for the next year, according to Zoopla.

In areas such as Truro, Exeter and Lincoln the supply of homes increased by an annual rate of over 20 per cent last month.

Nigel Bishop, managing director of the buying agent Recoco Property Search, said second homeowners and buy-to-let investors were facing “drastic changes” over tax reforms on empty homes.

“If a substantial number of second homes is being put up for sale, we could see the property market in areas such as Cornwall become increasingly attractive to house-hunters who are seeking a permanent residence but are currently priced out of the market,” he added.