The Bank of England’s decision to cut interest rates for the second time this year did not come as a great surprise but has, nevertheless, been welcomed by property professionals and the wider public in general. Inflation is still above the Bank’s target of 2% and it is anticipated that this rate cut will stimulate further economic growth to build on the small gains made in 2024, following on from 2023’s recession.
Last year, despite two rate cuts in the latter half of the year, corresponding drops in mortgage rates did not materialise, mainly due to uncertainty surrounding the election and subsequent Autumn Budget, but we have already seen some providers offering loans below 4% preceding yesterday’s decision, with the prospect of further favourable rates to come. After the cessation at the end of March of the latest Stamp Duty Land Tax holiday, this comes as timely and welcome news to first time buyers in particular.
So far in 2025, at Luscombe Maye we have seen a marked increase in activity across the board compared to last year, and we anticipate that this latest news, combined with the prediction from economic experts of at least two more rate cuts later in the year, will enhance affordability and thereby stimulate further market dynamism and confidence.
For further information about how this may affect you, contact your local branch for a free, no-obligation market appraisal.
Matt Jenvey, Associate Director
