The UK property market could see a resurgence in activity if the Bank of England proceeds with anticipated interest rate cuts later this year, according to industry analysts. Housing experts suggest that reduced borrowing costs may encourage more buyers to enter the market, potentially ending the current stagnation.
Mortgage Relief on the Horizon
Mark Harris of Savills notes that while recent economic uncertainty has dampened buyer enthusiasm, lower rates could provide much-needed momentum. "We're already seeing lenders reduce fixed-rate mortgage deals in anticipation of Bank of England moves," Harris explained. "This could make homeownership more accessible for first-time buyers in particular."
Regional Variations Persist
Zoopla's latest market analysis reveals significant regional differences in how the market might respond to rate cuts. While London and the Southeast may see modest price growth, more affordable regions could experience stronger demand from buyers stretching their budgets.
Affordability Challenges Remain
Despite potential rate reductions, housing affordability remains stretched after years of rapid price growth. Experts caution that while lower rates help, fundamental issues around housing supply and wage growth continue to constrain many would-be buyers.
Market Outlook
The property sector is watching the Bank of England closely, with many predicting the first rate cut could come as early as August. However, economists warn that any recovery may be gradual, with transaction volumes likely to improve before significant price movements occur.
