Interest rates cut by 0.25%
An interest rate cut has just been announced, what does this mean for the sales market?
Last time, the Bank of England held the rate at 4.5%, but has reduced it to 4.25% today, in what we are hoping could be a series of cuts in 2025. With inflation still at 2.6%, above the Bank’s target of 2%, the cut was widely anticipated. This 0.25% reduction takes the base rate to its lowest point since March 2023.
We are hoping this will bring a welcome shot in the arm for the sales market, as since the stamp duty concession changed at the beginning of April, and general economic uncertainty, there has definitely been a toughening of the local market. Viewing levels have not been quite what they were in the first quarter of this year, but we are still seeing good offers for correctly priced property and consequently agreeing an impressive level of sales.
With a number of lenders offering sub-4% mortgages and this recent cut, we are hoping this will boost sales activity and welcome new sellers and buyers to the market. Affordability for buyers is one of, if not the most important factor in making a decision to move. With this lower base rate, it should lead to lower mortgage rates, which we believe buyers will look to take advantage of and take the plunge.
Our approach is always optimistic but most importantly realistic, and our valuations are based on fact with a thorough assessment of your property, taking into account the current market.
If you are looking to sell in the near future our property experts would be delighted to hear from you.