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Trenethans, Bodmin, Cornwall, a beautiful country holding that is now sale agreed.
Ben Stephens BSc (Hons) MRICS, partner, office and sales manager at Stags Truro, looks at inflation rates ahead of the upcoming autumn budget.
Inflation has fallen further than expected in September and has now dropped below the 2% target for the first time since April 2021. The reduction to 1.7% has surprised many economists and paves the way for the Bank of England to cut interest rates at their next Monetary Policy meeting on 7th November. Some sources are even quietly mooting a ‘double drop’ before Christmas!
Like many estate agents, Stags has already noticed a significant rise in buyer interest following the rate cut in August. Reports from our 22 offices indicate that buyers are motivated and ready to make purchases, although it’s crucial that pricing is set appropriately.
In recent weeks, financial institutions have been factoring in an interest rate reduction, with five-year fixed rates for home movers now available at under 4.0%. As a result, mortgage approvals have reached their highest level in two years, with 64,900 approved in August.
However, the upcoming Budget on October 30th, which is expected to introduce an increased tax burden, casts a shadow. Anticipated tax hikes, along with changes to Stamp Duty Land Tax and rising Council Tax on second homes, have led to a surge of new properties entering the market. The choice for home movers is therefore the widest that it has been for many years and with savvy buyers ‘climbing off the fence’ there is clear momentum building in the housing market.
The continued uptick in activity is also great news for sellers and the Autumn Market in 2024 is likely to be a positive experience for those with realistic expectations and a strong desire to move. If you are considering buying or selling in the West Country, your local Stags team would be delighted to guide you through the next steps.
