The Bank of England left interest rates on hold at 4.25% this week. The property industry has broadly welcomed signals for further cuts in the cost of borrowing, which could come as soon as August, after “clearer evidence” of growing unemployment amid a slowing economy. Six members of the Bank’s nine-member monetary policy committee (MPC) voted to keep rates on hold. Although three preferred a reduction to 4%, to add to the four quarter-point cuts since last August.
Rates remain on a gradual downward path
The Bank’s Governor, Andrew Bailey, said interest rates “remain on a gradual downward
path after seeing signs of softening in the labour market”.
Chiefly, the Financial market expects the MPC to reduce rates at its next meeting in August and again to 3.75% before the end of the year.
The property market appears to be well placed
David Phillip commented, “There has been talk of base rate cuts potentially happening across the summer months. Although yesterday hasn’t delivered a dip as Interest rates remain on hold, it reinforces the growing sense of stability returning to the market. Homeowners will have to wait a little longer for the third bank cut of the year. The benefits of the May cut, however, are filtering through, with recent sub-4% mortgage headlines helping to boost agreed sales. The property market appears to be well-placed for what is continuing to be a resilient performance”
If you are considering selling your home and would like a free market appraisal, call David
Phillip FRICS on 01134 676 400.
David Phillip Estate Agents, selling properties in North Leeds and Wharfedale and covering
Bramhope, Adel, Pool-in-Wharfedale and Alwoodley
