General Election and interest rate hopes have boosted buyers - claim

The General Election and increased hopes of an interest rate cut seems to have boosted buyer confidence but not necessarily seller sentiment, Chestertons claims.

Inflation has hit its 2% target, raising hopes that the cost of borrowing will come down after the summer and once the election has taken place and a new government has settled in.

London estate agency Chestertons said it saw a 14% increase in the number of offers being made by house hunters in May compared with April 2024.

Meanwhile, there were 2% fewer properties available for sale over the same period as some sellers may have decided to delay putting their property on the market to first observe how a potential new government will impact on the housing market and prices.

Matt Thompson, head of sales at Chestertons, said: “A lot of house hunters have been feeling uncertain amid political and financial developments but, with some concrete changes on their way, became more confident to resume or finalise their property search in May.

“With an interest rate cut becoming increasingly likely – particularly after the European Central Bank’s announcement to cut rates - we will also see the slow introduction of more attractive mortgage products by lenders. This, in turn, will fuel buyer demand and see asking prices remain stable or slightly increase over the coming months."