Hope in the housing market
The Bank of England (BoE) has been raising Bank Rate at a rapid rate throughout 2023 in an effort to lower surging inflation. With new predictions suggesting that Bank Rate might have peaked, is it time for optimism to take hold again and have hope in the housing market?
After reaching 11.1% year-on-year last October, CPI inflation has since come back down to 6.7% (year to August) and is widely forecast to fall
further by the end of 2023. Hopes that rates have peaked heightened in September. After 14 consecutive meetings where rates were increased, good news came when the Bank of England’s Monetary Policy Committee voted to retain Bank Rate at 5.25%.
Sellers taking a hit
One less optimistic sign for homeowners is falling house prices. Analysis1 has revealed that the proportion of homes on the market
that have had at least one price reduction is at its highest level since 2011, with 36% of listed properties seeing their asking price fall at least once.
Hope takes hold
With many experts now predicting a smoother ride for inflation and interest rates, a greater sense of stability might soon be returning to the housing market. This should help mortgage holders prepare for the future and homeowners retain the value of their home. there's hope in the housing market for 2024.
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