Interest rate cut at last what does it mean?

Estate agents are braced for a busy Autumn selling season. This is after the first interest rate cut since March 2020.

The Bank of England reduced the base rate from 5.25% to 5%, which estate agents hope will bring down mortgage pricing and boost buyer demand.

Lee Venables, Sales Director at Jukes Estate Agents Harlow said: “The base rate cut will give buyers increasing confidence that mortgage rates are on course to return to more affordable levels, gradually improving the range of buyers in the market and their buying power.

“We expect this to feed through into more market activity in the autumn, particularly if there are further cuts to the base rates in the coming months.”

He said capacity for house price growth will remain limited until there is a more significant reduction in the cost of debt though, adding: “This is a clear signal to the market that the Bank feels it has turned a corner in the battle against inflation, and it should give most buyers and sellers confidence that the market will improve as we head into 2025.”

Geoff Flewers, Marketing Director at Jukes Estate Agents Harlow, added: “The wait for the first rate cut since March 2020 and the hullabaloo of a general election was not a conducive combination for homebuyers this summer. Many switched off early for the holiday period.

“Now there has been a cut, demand and transaction activity will increase when the autumn market gets underway in September and more mortgage rates fall below the 4% psychological threshold.”

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