The Bank of England has today reduced the base rate to 4.75%
Amid a plethora of short term fireworks this week, todays decision by the Bank of England monetary committee is likely to have a much longer and more significant impact on Britain’s borrowers.
The decision to reduce the bank base rate by 0.25% is a welcome boost for borrowers and much more significantly, is a sign that the “new normal” is probably now fully upon us although it probably doesn’t quite feel that way just yet..
So, critically, what does this mean for Britains housing market?
Somehow, the sudden and almost vertical rise in interest rates from 0.75% in March 2023 to 5.25% in August 2023 didn’t create the much predicted crash in the housing market. What happened instead was a period of stagnation where the numbers of properties available and transactions dropped off a cliff as Britain’s homeowners hunkered down and absorbed the huge increases in their monthly mortgage payments.
With elections on both sides of the pond out of the way and the budget behind us people will realise that, like it or not, we are entering a period of stability that has not been seen for 5-6 years and possibly longer.
Many “would like to” movers will have been put off taking the plunge and as we enter 2025 we should begin to see more properties come to the market than we have seen for some time. Clearly, more stock will have a hugely positive impact and for clients in our sector and wider choice is positive news given how tough it has been to find suitable properties over the last few years.
Naturally this will not be a quick fix but hopefully a gradual change will ensure that we are able to help more clients find suitable, and desperately needed, new homes.
If you have a client looking for a new home or would like to talk to our vastly experienced Property Finding team in general, please feel free to contact us on 0333 577 0809 or at hello@plg.uk
PLG Consultants
7th November 2024
