Bank of England Cuts Base Rate: Positive News for Buyers and Sellers

The Bank of England has lowered its base rate by 0.25% to 4.75%, a move that will bring cheaper loans and lower mortgage rates, supporting increased activity in the property market. This is the second rate cut since August, creating a favourable environment for both buyers and sellers as we approach the winter months.

Myles Moloney, Area Sales Manager at Chase Buchanan says: “With the Autum budget confirming there would not be an extension to the stamp duty deadline and now more favourable rates on borrowing, there is an expectation that the activity in the market will pick up towards the end of the year and into 2025. Stock levels are up across the UK so although demand is expected to increase it is unlikely to nudge prices upwards as buyers still have wider choice. The overall market has maintained a relatively strong position across much of 2024 and this latest news will help further entice buyers and seller alike to take the next step, especially those who will want to capitalise on the reduced stamp duty before April 2025 which in property transaction terms is not too far away.”

While the cut provides lower borrowing costs, it also means reduced returns for savers. House hunters are expected to take the opportunity to purchase properties before 31st March 2025, when the new Stamp Duty rates take effect. Overall, these changes are anticipated to drive increased activity, strengthening the housing market as the year draws to a close.

Dean Vellender of EasyLife Alliance advises: “From March 31, 2025, several Stamp Duty changes will come into effect, meaning that delaying your purchase could add thousands of pounds to the upfront cost. To find out how much you can borrow and understand the associated costs, now is the time to book an appointment with one of our mortgage advisers at EasyLife Alliance.”

At Chase Buchanan, we’re committed to helping you make the most of this market shift. Whether you’re a first-time buyer, selling your home, or expanding your property portfolio, our team is ready to assist. To discuss your potential property plans with one of our agents, please contact your local branch.