The first Bank of England rate cut for four years at the start of the month has helped to accelerate mortgage rate drops and contributed significantly to improved buyer demand, according to Rightmove.

These better conditions are helping to set up a positive autumn market, and the resultant increase in activity has led Rightmove to raise its 2024 forecast from a 1% drop over the whole of 2024 to a 1% rise in new seller asking prices.

The Rightmove house price index shows the average price of property coming to the market for sale saw a seasonal drop of 1.5% this month (-£5,708) to £367,785. 

However, new seller asking prices have fallen in the month of August for the past 18 years, and the size of this month’s drop was in line with the long-term average, Rightmove said. 

“The first Bank Rate cut since 2020 has sparked a welcome late summer boost in buyer activity,” said Tim Bannister at Rightmove. “While mortgage rates aren’t yet substantially lower since the rate cut, the fact that the long-hoped-for first cut has finally arrived, and mortgage rates are heading downwards, is positive for home-mover sentiment.”