On the 1^st August the Bank of England cut its base rate to 5%, which was the first reduction since March 2020.  This is seen as a positive move for the housing market, where mortgage lenders are competing against each other to offer the most favourable rates, some lenders are now providing fixed rates of below 4%, dependent on at least a 40% deposit or equity in their home.

Since March 2020, house prices have risen by 23% to an average of £285,000 and this new cut is expected to fuel further rises in house prices AND transactions through 2025.  There is the potential of another rate cut by the end of year, this should provide further confidence to the housing market.

According to a recent report by Zoopla (July 2024) ‘house prices are on track to be 2% higher by the end of 2024, and the supply of homes for sale continues to grow at 16% higher than a year ago.’

To conclude, it is widely expected the base rate may eventually level out at around 3.25%, not quite the 0.10% of March 2020 but does provide some welcome relief!

If you are looking to move house, please do give our Armitstead Barnett team a call.