- 07979198280
- info@murraypropertyholdings.co.uk
The Bank of England has once again this week, announced that the Base Rate will be staying put at 5.25%, so what does this mean for the property market?
We need to get the UK back on an even keel, and the banks need to make sure that the balance is good when it comes to lowering inflation. The decision to hold will come as a relief for buyers and sellers.
Professionals are now surmising that the base rate has now hit the highest point, and is likely to remain the same during 2024, even though it is rumoured we could have a cut as early as May it is more realistic to have a potential decrease towards the end of the year. The Bank of England would not be likely to lower the base rate until inflation has stabilised at 2%, but never say never!
This week the inflation rate has fallen to 3.4%. This is a much bigger decrease than was predicted, and if you glance back to early last year in 2023, the inflation rate was much higher at a whopping 10%, more proof that things are starting to improve and hopefully we will reach that 2% soon.
More good news, whilst mortgage rates were starting to creep up again over the last 4 weeks, the average 5-year fixed rate has dropped to 4.85% this week, and the average 2-year fixed rate has dropped from 6.61% to 5.23% (compared to 6.08% in July last year). This hold will start to instil more confidence in the market and we can expect rates to stabilise and possibly decrease more over the coming weeks.
Under the Mortgage Charter, you can lock in a new deal up to 6 months before your deal is due to expire.
A freeze in interest rates often leads to an increase in mortgage approvals.
Property sales companies have reported an increase in viewings 23% (versus this time last year) with a 31% increase in offers being accepted on properties.
The supply of homes for sale during March is 21% higher than the same period last year. Spring is always a great time to purchase a property because there are generally more houses on the market. If you are looking to purchase an investment property, our team is here to help.
The bank has reported in recent weeks that sales across supermarkets have increased, demonstrating that people are starting to make purchases again.
It has been noted that the conflict in the Middle East and current disruptions to one of the world’s busiest shipping lanes in the Red Sea might cause the prices of goods to rise again, major items such as electrical goods and clothing are heavily impacted. And UK imports and exports are currently affected. Having an impact upon our economy.
The next rate announcement will take place on 9th May, 2024.
#bankenglandbaserate #baserate #mortgages #propertymarket #assetbackedinvestment #propertyinvestment #investoraffordability #propertyinvestment #propertyinvestmentscotland #propertyinvestment #scottish propertymarket #scotlandsproperty #scotlandspropertymarket #assetbackedinvestment #propertyinvestmentscotland #getstartedinvestinginproperty
Sign up here to our informative LinkedIn Newsletters (below – hit gold with the gold button!)
We bring you all the latest in general property news, rates, eGuides, calculators and much more, you won’t be disappointed.
Email: info@murraypropertyholdings.co.uk
Call: 07979198280