Inflation made a surprise drop to 1.7% last month which is the lowest rate for three and a half years and could pave the way for an interest rate cut decision at the Bank of England’s next monetary committee meeting. Lenders are already cutting rates which is enticing buyers to the market across all price ranges. However, the possibility of tax changes in the new government’s upcoming Budget is making investors, second home owners and those owning multiple homes wary. Nearly a third (32%) of homes for sale on Zoopla are ‘chain-free’, in London 2 and 3- bed houses are likely to be chain-free. Halifax reports that mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022. While improved mortgage affordability should continue to support buyer activity – boosted by anticipated further cuts to interest rates – housing costs remain a challenge for many. As a result Halifax expects property price growth over the rest of this year and into next to remain modest.
“Thank you Jonathan and the whole team at Napier Watt for marketing and executing the sale of Buckingham Mews so brilliantly.”
