The property market in the UK sees an increase in demand for lower mortgage deals following the Bank of England's decision to reduce interest rates.

• The largest high street lenders in Britain are still reducing borrowing costs following the Bank of England's first interest rate reduction in four years, which led to an increase in homebuyer activity.
• The banks Barclays, Halifax, HSBC, and NatWest are now providing five-year fixed rate mortgages at less than 4%, which is below the Bank of England's 5% key rate.
• The easing of tracker rates, which followed the Bank's 25 basis point rate reduction earlier this month, has resulted in a decrease in the rates.

The largest high street lenders in Britain are still reducing borrowing costs following the Bank of England's first interest rate reduction in four years, which resulted in an increase in homebuyer activity.

Some of the lenders, including Barclays, Halifax, and HSBC, are currently providing five-year fixed rate mortgages at rates below the Bank of England's 5% key rate.

The lowest five-year fixed rate for buyers with a 40% deposit since before the U.K.'s disastrous mini-Budget in September 2022 is currently 3.83%, according to a new report from property portal Rightmove.

The easing of tracker rates, which followed the Bank's 25-basis-point rate reduction earlier this month, has resulted in a decrease in the rates.

Buyer activity has increased due to the improving economic environment and political certainty resulting from the U.K.'s July general election, according to Rightmove.

The number of house hunters contacting estate agents for viewings has increased by 19% since August 1, following the BOE's decision, according to a portal report. This is a significant increase from the 11% annual increase recorded in July.

This month, the number of new sellers entering the market increased by 5% compared to the previous year. At the same time, the number of sales being agreed upon is 16% higher than the near-peak mortgage rate period of a year ago.

While the rate cut brought some relief to struggling homebuyers, Tim Bannister, Rightmove's director of property science, expects activity to pick up further through the autumn.

The arrival of the first long-awaited rate cut and the subsequent decrease in mortgage rates is positively impacting home-mover sentiment, according to the report.

Rightmove now anticipates that new seller asking prices will increase by 1% in 2024, a change from its previous forecast of a 1% decrease in prices.

The BOE will make a new interest rate decision on Sept. 19, with markets currently pricing in around a 37% chance of a September rate cut and expectations rising to 74% for November, according to LSEG data.

L&C Mortgages' product manager, Peter Gettins, stated that many buyers will closely monitor the meeting's outcome to gain insights on the future direction of mortgage rates.

"Some individuals might choose to delay taking action until rates decrease further. If we receive another base rate reduction in the near future, it is likely that confidence will strengthen," he stated in an email to CNBC.