Mon, 22 Jul 2024 | Market update
Potential Drop in the Base Rate
With inflation staying the same this might signal the Bank of England to lower the base rate. Should this happen, it could have a positive effect on interest rates for those looking to borrow money. We've already seen most major lenders reduce interest rates, and signs indicate that 5-year fixed rates are still cheaper than 2-year fixed rates. This suggests that banks are encouraging borrowers to lock in longer-term deals, anticipating that eventually, 2-year money will be cheaper than 5-year money in normal cycles. Any reduction in the base rate will also boost confidence among prospective buyers, leading to an increase in buyer registrations as people feel more comfortable spending.
Rental Market Insights
Quarter 3, encompassing July, August, and September, is always the busiest time of the year for the rental sector due to the high number of tenants looking to move during the summer months. This trend has been consistent over our 34 years of operation, and we don’t see it changing anytime soon. July has already shown a 21.2% increase in tenant registrations month on month, and the stock available for viewing is also in a very good place.
The Driving Force of the British Economy
The housing market is a key driver of the British economy, and the Home Counties are one of the best hotspots outside of London. Whether buying, selling, or renting, this area remains busy. If you want to understand more about what’s happening in your area, contact one of our nine local offices. Our team members are always happy to help.
Summary: A Positive Outlook for 2024
The first half of 2024 has been much better for the sales and lettings market than anyone expected. With the possibility of the Bank of England lowering the base rate twice in the coming months and inflation remaining around 2%, we could see a strong end to 2024 with steady price growth continuing into 2025. This is great news for maintaining a property market with consistent growth, avoiding the boom-to-bust cycles seen in the early 90s, 2001, and 2007.