The Bank of England’s base rate currently sits at 4.75%, but recent hints from the governor suggest we could see up to four interest rate cuts in 2025. This news has sparked optimism among homeowners, buyers, and investors who have felt the impact of higher borrowing costs. Why Are Rate Cuts Being Discussed? Following a period of high interest rates aimed at tackling inflation, the UK economy now...
The latest Consumer Prices Index (CPI) released by the Office for National Statistics revealed that inflation increased from 1.7% in September to 2.3% in October. But how exactly does inflation impact the property market? There is a link. But it is not quite as simple as it might seem. When inflation rises or falls, it does not necessarily mean that house prices are rising or falling. The CPI, the main...
Earlier today, the Bank of England (B of E) announced that the base interest rate will be cut by 0.25 to 4.75%. This is good news for the property market. Why? The B of E's base rate influences the interest rates many lenders charge for mortgages, loans and other types of credit they offer people. A reduction in the base rate means you can usually borrow money for less. What does it mean for...
With PM Keir Starmer warning it would be painful, the new government’s first Budget has been hotly awaited for some weeks now. In this article, we’ll look at what the Chancellor of the Exchequer, Rachel Reeves, announced – paying specific attention to what will affect the property market. The Chancellor started by giving forecasts which suggest inflation will rise slightly, to 2%+, over the next...
After weeks of campaigning, the general election is done. The worst-kept secret of 2024 is out. We have a new Labour government in the UK, with the party winning by a landslide. Maybe you’re pleased, disappointed or not that bothered. But the fact the election is done ought to be good news for the market. Property markets don’t like uncertainty. So, after months of ‘will they-won’t...