Bank of England’s Interest Rate Cut Sparks Optimism in Cumbria’s Property Market
The Bank of England's recent decision to reduce interest rates by 0.25% to 5% has generated positive expectations for the property market in Cumbria. Grace Oakey, Valuer in our Penrith office, shares her thoughts as to what she believes that this means for the market.
The numerous interest rate rises over the last few years have put a huge strain on the property industry, so this reduction is welcome news for those looking to move or enter the housing market.
Here in the Penrith area, the market has recently being shown signs of stability. This week, even before the interest rates dropped, we sold six properties. These sales included first-time buyers, second homes, and cash buyers. Given the current level of interest, I am positive about the impact this rate cut will have on the property market here in the coming months.
There is considerable pent-up demand in the market after months of financial and political uncertainty. After a good late Spring and early Summer of property sales, we look forward to an even few months as we head into Autumn. Those looking to move and be in their new home before Christmas should start to take action now.
Official figures indicate that house prices have grown for three consecutive months, and mortgage approvals have held steady near their highest level in 18 months. Confidence and excitement around the market have been building, and this interest rate reduction will hopefully be the driver to encourage people to push ahead with their home moves.