A 4% drop in buyer demand reported in Rightmove’s April house price index is a ‘temporary lull’ that will bounce back in May, the property portal reports.
Despite the fall, year-to-date buyer demand is 3% ahead of the same period last year, sales agreed are 4% up for the same period, and Rightmove says its real-time data shows an uptick in buyer demand in the first half of May.
‘This is the first month this year that buyer demand has fallen below last year’s level,’ Rightmove noted in the report – but adds that April’s lull ‘may just be temporary’.
“The number of sales agreed in April was 5% ahead of the same period in 2024. This indicates that those buyers who are in the market are serious and are taking advantage of the good choice to get deals done.”
With average earnings now over 5% ahead of last year and outpacing annual house price growth of 1.2%, Rightmove says the right conditions are coming together to support improved buyer activity.
“Mortgage lenders have been reviewing affordability criteria and slowly reducing interest rates, helping buyers to borrow more. Rightmove’s weekly mortgage tracker shows that the lowest available two-year fixed mortgage rate is now 3.72%, down from 4.75% last year. The much anticipated second Bank Rate cut of the year has also now finally arrived, which could spur on further rate reductions from lenders. The number of new properties coming to the market for sale is 14% ahead of this time last year, keeping buyer choice at its highest level for a decade which is giving buyers an edge in price negotiations.”
Colleen Babcock, property expert at Rightmove, commented:
“Despite April’s dip in new buyer demand, there are early signs of a bounce-back in May. Mortgage interest rates are lower than they were at this time last year, and the recent Bank Rate cut also gives us some optimism for further mortgage rate drops that will enable more to buy.”
Toby Leek is president of NAEA Propertymark, the professional body for estate agents. He said of the April figures:
“It’s no surprise that April saw a lull in market activity as many of those who wanted to move home did so before stamp duty increased from 1 April.
“However, prices and the market long term remain resilient and with improved mortgage products now being introduced, buyers are finding extra room in their finances, keeping the cogs of the housing market rotating, and in turn, the wider economy too.”
