The Bank of England has announced a second interest rate cut this year, providing added support for those moving home. Today, policymakers reduced the base rate by 0.25 percentage points, bringing it down from 5% to 4.75%. This follows a previous reduction in August, the first since 2020, and a steady rate held in September.
Bank of England Governor Andrew Bailey expressed optimism, stating, “It’s likely that interest rates will continue to fall gradually from here,” signalling a steady approach to future cuts.
Malcolm Prescott, Managing Director of award-winning estate agents Webbers, responded positively to the news: “This is a further positive move from the Bank, one that we and others had anticipated, given recent measures to control inflation. Now that the Budget is behind us, buyers, sellers, and investors can see a clearer path ahead. We expect lenders to introduce even more competitive mortgage products, which will be a welcome boost for our business.”
He continued, “I’ve said it many times, but it’s worth repeating—property sales rely on positive sentiment, and this announcement will certainly foster that and at present buyers have tremendous choice with many agents like Webbers holding 30% or so more stock that at the same time last year, together with some great new developments in the area.”
The Bank’s latest quarterly forecast hints that the recent Budget may contribute slightly to inflationary pressures, potentially moderating the pace of future rate cuts. Bailey added, “We need to ensure inflation stays close to target, so we can’t cut interest rates too quickly or by too much.”