There has been a mixed reaction from the property and real estate industry regarding today’s announcement. While the stability of a held rate has signalled relief to some, others see this as a missed opportunity to cut the rate and stimulate market activity.
Rightmove’s mortgage expert Matt Smith commented: “Although today isn’t the day for the first Base rate cut, each day that passes is one step closer, and it’s very much a ‘when’ rather than ‘if’ we see the first drop from 5.25%.”
Ed Phillips, CEO of Lomond, commented: “Having previously endured 14 consecutive base rate hikes since December 2021, it’s been a case of no news is good news for the nation’s homebuyers of late when it comes to the Bank of England’s decision on interest rates. That said, they can be forgiven for feeling a little disappointed that we didn’t see a cut materialise today, particularly given this week’s inflation figures.
Emily Williams, director of research at Savills, commented: “Although the base rate remained unchanged today, there are welcome indicators that should bring confidence to the housing market. This was the first meeting since September 2021 in which no members voted for a rate increase, which, coupled with the lowest rate of inflation for over two years, will give mortgage markets further confidence that the Bank will be in a position to cut the base rate in the coming months.
“This should provide a further boost to the housing market, which has already seen a stronger-than-expected start to the year. In the first eight weeks of the year, the number of sales agreed was up 31% compared to the same time last year, according to analysis of data from TwentyCI. Last week’s RICS survey also suggested growing confidence, with positive sentiment for both new buyer enquiries and new sales instructions for the second month in a row.”
Read More: So what is a studio apartment? With our latest guides and insights, you can learn more about investing in property in the UK!
