THIS month's cut in interest rates has provided a "big shot of positivity" for the housing market, according to a Keighley estate agency boss.

Patrick McCutcheon – head of residential at Dacre, Son & Hartley – says the company has seen activity surge since the Bank of England reduced rates to five per cent, from 5.25 per cent, on August 1.

And that picture is mirrored in latest data from Rightmove, which reveals that in the wake of the announcement there's been a 19 per cent year-on-year increase in buyer demand.

Nationally, average house prices have dropped by 1.5 per cent, to £367,785. But Yorkshire and the Humber is bucking the trend; it is the only region in the UK to see prices rise this month – by 0.3 per cent, to an average £252,835.

Mr McCutcheon says: "Speculation about when the first Bank of England rate cut would come had been a major uncertainty for the housing market, so when rates were reduced for the first time in four years it was a big shot of positivity for the market.

"It created an immediate buzz, and we’ve certainly seen an uplift in activity across our offices since then.

"Another big change in 2024 is the increase in stock for sale, which had been severely restricted in recent years. Buyers now have homes to choose from throughout North and West Yorkshire. All this should set the market up for a busy autumn period."

Rightmove's weekly mortgage tracker shows that the average five-year fixed mortgage rate is now 4.80 per cent, compared to 5.82 per cent a year ago.

Tim Bannister, for Rightmove, says: "The first Bank of England rate cut since 2020 has sparked a welcome late-summer boost in buyer activity.

"Whilst mortgage rates aren’t yet substantially lower since the interest 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.

"As the summer holiday season comes to an end, the conditions are there for a more active autumn market.

"The reaction from home-movers to what is hopefully only the first of several rate cuts over the next year or two, combined with other positive data and trends, has led us to raise our price prediction for the year.

"We now expect new seller prices to rise marginally by one per cent over the whole of 2024."