News
Alongside the recent BoE interest cut to 5%, the first cut in 5 years, house prices are forecasted to rise by 2.5% in the second half of this year according to Savills. Their Head of Residential Research, Lucian Cook said of the recent flurry of movement in the market ‘it was a signal to the market that the bank feels it has turned a corner in the battle against inflation.’ Cook added, ‘as a result of the cut, mortgage rates will be on course to return to a more affordable level.’
This morning saw more economic growth with figures that the economy had grown by 0.6% between April and June. This allowed traders betting on a 39% chance of a back-to-back base rate cut in September. However positive this may sound, especially for the housing market, the UK economy still has a way to go, with a lot of the results down to a rise in population, rather than a rise in productivity.
Lucian Cook ended by saying ‘Though modest, it’s still likely to be the first time house price growth has outpaced the underlying rate of inflation since September 2022.’
Recent Comments