Interest Rates Held

2nd February 2024

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Interest Rates

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Agents across the country are becoming more confident about a busy Spring market after the Bank of England held interest rates for the fourth consecutive time at 5.25%.


In general terms many agents report a busy start to the year with motivated buyers and sellers keen to get on with their moves after a period of sitting on their hands and waiting for mortgage rates to improve.” 


Managing Director of Webbers Property Services says “The good news in terms of The Bank of England’s inaction, has actually provided a period of needed stability to the market, allowing buyer and seller confidence to build after a relatively subdued market in 2023. 


Malcolm goes on to say “Across the Webbers network we are already seeing a definite increase in terms of the number of new prospective buyers and fresh listings coming onto the market in January, which will no doubt fuel positive sentiment further as we approach what we think will be a better Spring market than last year. Though the market will remain cautious and home-sellers must be realistic when it comes to setting a guide price!


Gary Holder Webbers Financial Director explains “In truth the decision to hold was never really in doubt but the fact inflation is due to fall notably faster than previously guided by the Bank of England is good news for the housing market. 


Gary continues, “For anyone buying or re-mortgaging, the Bank of England’s cautious tone should be weighed against the fact lenders set their fixed rates based on market expectations, irrespective of whether they come true or not. As the economic outlook improves, our expectations are that UK house prices will see a marginal gain this year”.


Nathan Emerson, chief executive of Propertymark, said: “It is positive to see that many people intending to buy their first home or sell their current one won’t be hindered by an increase in interest rates.  
“However, it is now time for the UK Government to continue to curb inflation so that interest rates can fall further to help ease the backlash this has had on people’s affordability. They should make 2024 the year consumers start to enjoy some confidence again following three years of disruption to the economy.”
 

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