Holly Tomlinson, financial planner at wealth management company Quilter, said the housing market could “start to heat up” after the Bank of England cut rates for the first time in more than four years.
She said while the cut would have a minor impact on repayments for variable and tracker mortgages, and no change for fixed-rate deals, the “change in rates does a lot for buyer and seller confidence”.
“A feeling that rates are going in the right direction though will help many people decide to take the leap back into the market, pushing up demand for homes,” she said.
Ms Tomlinson added those “on the fence about selling” their home may also decide to go ahead.
But, while house prices rising was “good news” for homeowners, she said it made it more difficult for first-time buyers to get on the property ladder.
Financial investors are betting the Bank is more likely to cut interest rates in November, rather than at its next meeting in September.
Halifax, one of the biggest mortgage lenders in the UK, bases its figures on house prices on its own lending and its statistics do not include buyers who purchase homes with cash, or buy-to-let deals.
Cash buyers account for about a third of housing sales.
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