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Lee Flay BSc Hons, Stags Partner, discusses the latest interest rate drop.
The UK property market received positive news today following the announcement that the Bank of England have dropped the base rate to 4.5%.
This is the first of four expected interest rate cuts for 2025. During an interview with the Financial Times on 4th December, Bank of England Governor Andrew Bailey signalled the UK could see up to four quarter point interest rate cuts throughout the year. Interest rates are difficult to predict as there are many variables, but this could see interest rates continue to fall from 4.5% to 3.75%.
The new base rate is predicted to have a positive effect on the mortgage market. It will drive confidence in buyers, allowing them to secure better mortgage deals, encouraging them to take that step in securing their next or first home. Fuelling the market with more confident buyers should give sellers more confidence too, which will generally help to power the property market across the South West.
This, coupled with the increased activity in buyer demand, already reported by Stags, will add more bounce to the spring market, likely resulting in an improving market for 2025.
If you are considering buying or selling in the West Country, it is a perfect time to make the first move and find out what your home is worth. The importance of aligning with the right agent and marketing strategy remain as vital as ever.
Our local Stags teams would be delighted to hear from you and guide you through your next steps.
CLICK HERE for more information on the stamp duty changes due to take place in April 2025.
