The UK housing market has been stuck in a slump, but experts believe a single 'magic mortgage number' could be the key to reviving it. According to industry analysts, if mortgage rates drop to 4.5%, buyer demand could surge, breathing new life into the stagnant property sector.
Why 4.5% Matters
For months, high borrowing costs have deterred potential buyers, leading to sluggish sales and falling prices. However, research suggests that a rate of 4.5% would make homeownership affordable again for many, particularly first-time buyers.
What This Means for Sellers
If lenders lower rates to this threshold, sellers could finally see increased interest in their properties. Estate agents report that homes priced competitively are already attracting attention, but a drop in mortgage costs would widen the pool of potential buyers.
The Bigger Picture
While the Bank of England's base rate remains high, some lenders have begun trimming their fixed-rate deals in anticipation of future cuts. A sustained shift towards 4.5% could stabilise the market and restore confidence among investors and homeowners alike.
For now, prospective buyers are advised to keep a close eye on rate trends—the elusive 'magic number' might just be within reach.
