UK Property Market Sees Improvements as Buyers Expect Rate Cuts

The UK Property Market is expecting to see improvements in the second half of this year, with inflation rates staying steady for three consecutive months at 2% - which is in-line with the Bank of England’s targets.

Inflation rates holding steady supports the expectation that we will start to see interest rate reductions, and as a result of this, a drop in the mortgage rates, encouraging buyers that previously stepped back from the market to re-enter and explore their options.

“I believe that in September we will see the first interest rate reduction, and as a result lending and mortgage offers will improve, typically when we have an interest rate reduction the number of applicants for homes rises by up to 40 per cent and sales deals rise by 20 per cent”
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Paul Finch, director at London-based property agency Beauchamp Estates

Interest rates in the UK raised to the current average of 5.25%, and this hike in financing saw a decline in the market, resulting in a drop in house prices. However, we’re seeing increased in house prices across the UK, and the expectation is that with the interest rate cut, mortgage rates will follow suit.

“Most expectations are that the Bank of England will start to cut bank rates from August,” said Mandy Wong, head of international residential at JLL Asia-Pacific. “And you could find more favourable mortgages that have started to creep into the market, products like under 5 per cent on two- to five-year fixed rates.”
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As rates begin to drop, the market will see a flurry of action from both buyers and sellers keen to benefit from new rates and more affordable mortgage agreements.

If you’ve been waiting to buy property due to the current climate, now is the time to restart the process. Speak to one of our expert property consultants today to find out more about the available opportunities and the benefits of investing with Beech Holdings.

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