Advertise Here
Advertise Here

Optimistic Outlook For UK House Prices In 2024 As Analysts Anticipate An Interest Rate Cut

After a year of sustained price falls in 2023, global property consultancy Knight Frank have forecast that house prices will increase by upwards of 3% by the end of 2024, continuing the small rise witnessed in the final few months of the year.

Experts from across the housing sector have pinned this prediction on the anticipation of an interest rate cut by the Bank of England later this year, with a majority of leading economists forecasting at least two cuts to the base rate by the end of 2024.

These predictions have been fuelled primarily by a continued decline to the rate of inflation, with tomorrow’s announcement from the ONS tipped to reveal a further decrease following the cooldown of wage growth and the pursuit of aggressive promotional strategies from vendors over the festive period.

Group Chairman of Cornerstone Tax, Britain’s leading property tax consultancy, David Hannah, calls upon the BoE to cut interest rates at their next meeting in a bid to further the housing market’s momentum towards recovery following a tumultuous 2023.

Downward inflationary trends in the retail sector and recession fears have led many experts to agree that interest rates have now reached their apex at 5.25% following three consecutive decisions to pause increases to the base rate.

In the months following, a majority of the nation’s leading mortgage lenders have been engaged in a price war as the average rate for a five-year fixed fell from 6.37% last August to the current price of 5.66%. This trend is expected to continue into the year, with HSBC announcing a five-year fixed remortgage deal of 3.94% in the first week of 2024.

According to David Hannah, these cuts have been driven principally by the expected cut to the base rate of interest, as all signs point towards a continued downward trend to inflation, the BoE is at serious risk of overshooting its 2% target. In order to stave off growing recession fears, the Monetary Policy Committee has a responsibility to listen to the property market at their next meeting in February and prioritise the wellbeing of prospective homeowners looking to take their first step on the property ladder.

David Hannah, Chairman of Cornerstone Tax, said: “Tomorrow’s inflation announcement will absolutely reveal a continuation of the trend we’ve all been witnessing since the BoE’s initial decision to pause interest rates. With November’s figures reporting a two-year low of 3.9% – the BoE would be playing with fire if they didn’t at least think about a cut to the base rate of interest.

“With a majority of the country’s mortgage lenders engaged in the current price war, it’s high time that the Monetary Policy Committee listened to the property market and supported the mortgage sector’s downward momentum, in the end, prioritising prospective homeowners and getting Brits to buy again.”

Related articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share article

Latest articles

Newsletter

Subscribe to stay updated.


Notice: ob_end_flush(): Failed to send buffer of zlib output compression (0) in /home/heatzone/specifymagazine.co.uk/wp-includes/functions.php on line 5420