The Bank of England has today reduced the base interest rate to 4%, down from 4.25% – the fifth cut since last August – bringing the rate to its lowest level in over two years.
While inflation remains at 3.6%, still above the Bank’s 2% target, the decision is intended to stimulate growth and strengthen the wider economy.
Malcolm Prescott, Managing Director of Webbers Property Services, which operates 13 sales and lettings offices across North Devon, Somerset and Cornwall, welcomed the move:
“We had expected and predicted a further drop in the Bank rate and we believe there will be at least one further drop this year which is bound to give an extra needed boost for buyers and especially younger buyers keen to get onto the property ladder. The UK property market is built on high confidence and this has to help as we move towards the autumn months.”
The reduction is expected to provide a lift for buyers and sellers alike, improving affordability, injecting momentum into the housing market, and encouraging higher transaction levels as the year progresses.
With the stamp duty concession now ended, further reductions in interest rates will be crucial to sustaining confidence and activity.
If you need further help or advice contact your local Webbers Team
