Marketing Newscast

(Edited 27 August 2024)

The Bank of England has cut interest rates for the first time in four years, triggering an immediate upturn in the UK property market as cheaper mortgages surge buyer interest. 

A leading property website has shown that since 1st August, estate agent enquiries have jumped by 19% compared to this time last year. 

The Bank cut interest rates on 1st August for the first time since the start of the pandemic from 5.25% to 5%. The cut has positively impacted buyer confidence in the market, leading to more housing enquiries.

Figures from last week showed inflation rose to 2.2% in July, above the Bank’s 2% target. This figure is still significantly lower than the 11% peak two years ago when the Russian invasion of Ukraine led to a surge in energy prices. 

The average five-year fixed-rate mortgage is now 4.8%, a significant decrease from 5.82% in 2023. The availability of cheaper mortgages has significantly improved buyer demand, leading to increased enquiries into new properties. Confidence in the market is also spurred on by the political certainty of Labour’s landslide.