Knight Frank: ‘It’s a good time to be a homebuyer’

It is currently one of the best times to be a homebuyer, Knight Frank claims.

The agency brand has highlighted that a lack of housing surprises in the General Election manifestos and interest rate cut expectations being moved to later this year, is putting pressure on demand and prices. 

Tom Bill, head of UK residential research for Knight Frank, said: “Overall, mortgage rates are unlikely to fall meaningfully any time soon and that, together with a degree of political uncertainty, is keeping demand in check.

“Ironically, it has rarely been a better time to be a buyer in recent years.”

He highlighted figures from Knight Frank showing there were 5.9 new prospective buyers for every sales instruction in the UK in May.

Bill added: “Buyers have only faced less competition once during the last five years, two months after the mini-Budget in December 2022.

“As the Nationwide and Halifax indices have demonstrated in recent months, higher supply and lower demand is putting downwards pressure on prices. It is something that sellers should bear in mind, together with the reality that a wave of owners are rolling off sub-2% mortgages.

“The Autumn market is likely to begin with greater political uncertainty, but will it be further buoyed by a rate cut?

“Inflation data this Wednesday will provide a good steer as to whether current expectations for November look too gloomy or if a cut is more likely in August or September.

“Whatever month it happens in, buyers can certainly expect stiffer competition after the summer.”

It comes as the latest prime London property data from Knight Frank shows while demand has cooled, supply remains strong, which is putting downwards pressure on prices. The number of new sales instructions was +12% above £5 million and +18% in the sub-£5 million price bracket.