Bank of England Governor Andrew Bailey announced a cut in the base interest rate on Thursday 7th November 2024, which would help the housing market after a blow of the recent Budget.
The Bank of England had been expected to announce an interest rate cut in a move that will give another boost to the housing market.
Governor Andrew Bailey and the other members of the Bank of England’s Monetary Policy Committee decided against a cut last time they met in September.
The current rate of 5% has been to 4.75%, after a 0.25% cut in August, and ahead of a possible further reduction in December.
Many experts expected the Bank to hold the rate last time, but making a cut in November and December shows it considers the war on inflation is won. Inflation currently stands at 1.7% and was 2.2% the last time the MPC met, so that might be a factor that influenced the Bank’s decision makers.
The effects of the Budget on the housing market is still uncertain, with a hike in Stamp Duty from 3% to 5% on buy-to-let properties possibly acting as a brake on new investment purchases.
House prices are expected to return to consistent year-on-year growth, we expect this will build confidence in the Durham housing market for both vendors and buyers over the coming months.
