The number of agreed house sales over the past month has risen by 15% compared to the same period last year, according to Rightmove. This increase comes as buyers anticipate potential “gamechanging” interest rate cuts, which they hope could be announced as early as August.

Rightmove, the UK’s largest property website, reported that homebuyers have largely overlooked the “distractions” of the general election and the Euro 2024 football tournament, maintaining transaction levels significantly above those of the previous year.

The website also noted that the average price of properties newly listed for sale saw a slight decrease of 0.4%, or £1,617, bringing the average to £373,493. However, it cautioned that prices in the south-east experienced a more significant decline, dropping by 2%.

Rightmove has noted that the number of agreed house sales has seen an “encouraging” increase of 15% compared to the same period last year, with expectations that sales will likely continue to rise into the autumn. Last year, the UK housing market faced significant challenges due to peak mortgage rates.

Tim Bannister, a director at Rightmove, mentioned that many potential home movers are waiting for the Bank of England to reduce the current interest rate of 5.25% before making their moves.

Last week, households received mixed signals regarding potential interest rate cuts. On Wednesday, Huw Pill, the Bank of England’s chief economist, remarked that key inflation measures remained “uncomfortably high,” which dampened hopes for a rate cut in early August.

Contrarily, major lenders seemed to anticipate otherwise, as they lowered the prices of their top mortgage deals by the end of last week. Halifax, the UK’s largest lender, reduced its rates by up to 0.13%, while Barclays made cuts of up to 0.33%, with its five-year fixed-rate mortgage now being the most affordable on the market at 4.08%.

These reductions follow a series of cuts from other lenders, including NatWest and HSBC, suggesting a rate competition among banks. Adrian Anderson, managing director of brokerage Anderson Harris, indicated that lower mortgage rates could positively influence people’s borrowing ability and willingness.

He also mentioned that it wouldn’t be surprising to see some five-year fixed-rate mortgages drop below 4% by the end of the year.

Rightmove reported that the average five-year fixed rate is currently 4.97%, significantly lower than the peak of 6.11% in July 2023, but still much higher than the 2.51% average offered to homebuyers in July 2021.

Tim Bannister of Rightmove suggested that interest rate cuts could be the catalyst needed to invigorate the market.

“A first base rate cut by the Bank of England in over four years, combined with new political stability, could pave the way for a positive autumn market, enhancing affordability and fostering a more confident outlook in the latter half of the year,” he stated.