Impact of Bank of England Interest Rate Decrease on the UK Housing Market in North West England
Andrew Low, Client Services at H&H Land & Estates, discusses the impact of yesterday’s interest rate reduction.
Yesterday, the Bank of England announced a 0.25% decrease in interest rates, which is expected to have positive implications for the housing market in Cumbria. With borrowing now cheaper, first-time buyers may find it easier to enter the market, helping to stimulate upward movement in housing chains and boosting overall property sales.
Andrew Low commented: “Any drop in interest rates, which results in making it cheaper to borrow money, especially in the housing market, is always welcome. The most direct benefit is that it encourages more first-time buyers to enter the market. This, in turn, helps build chains upwards, enabling second and third-time buyers and sellers to progress up the housing ladder.”
He continued: “We expect that this decrease will bring renewed confidence to the market, encouraging more activity. A busier housing market, combined with lower borrowing costs, stimulates general economic activity. When interest rates are lower, people are more inclined to spend money as there is less incentive to save it.”
Across all of our offices – in Kendal, Carlisle, Penrith, and Cockermouth – the year has begun well, with a steady stream of transactions being completed. Combining the positivity of the interest rate decrease with the approach of spring, traditionally a busy time for bringing property to the market, we expect to see a further increase in sales activity.
At H&H Land & Estates, we remain committed to supporting clients in navigating these changes and will continue providing expert guidance on property transactions in this evolving market