House prices are set to bounce back in spring as lower mortgage rates lure buyers back into the market.
The number of property sales increased by 1% to 82,940 between January and February, according to a report published by HMRC on Thursday.
The Telegraph reports that the increase in transactions were due to improved buyer confidence as inflation and interest rates begin to steady.
The Bank of England has held the base rate at 5.25% since August, but this week accounting firm KPMG predicted the Bank would cut rates four times this year. Inflation, meanwhile, fell to a two-year low of 3.4% in February.
Santander, HSBC and Barclays reduced mortgage rates this week, while others unveiled new deals to lure in homebuyers who “sat out” of the market in 2023.
Barclays cut fixed rates by up to 0.25 percentage points, with its two-year product now at 4.64% with a £999 fee.
HSBC’s equivalent deal is at 4.33% while Santander’s cuts include a five-year remortgage offer fixed at 4.34%.
Experts predict fixed mortgage rates could dip below 4% within weeks as they react to an improving economic picture, easing affordability pressures on borrowers and fuelling optimism among homeowners.