Interest Rates: August 2024 Update
Property experts say that many people have put their moving plans on hold until interest rates drop*.
Is this the right or wrong thing to do?
Let’s take a look**.
First, some context
In its battle to beat inflation, the Bank of England (BoE) has held rates at 5.25% since August last year.
Today, 1st August 2024, Interest rates have been cut to 5.0% for the first time in over four years. So what does that mean for homeowners planning on selling?
The BoE won’t want to cut rates too quickly in case inflation surges like it did last year.
While rates may drop a little bit, if you’re holding out for the ultra-low deals we saw a few years ago, you could be waiting a long time.
Other issues to consider
Here are some other issues to weigh up when deciding on your next move.
- Currently, properties on the market are competitively priced. There are some very good deals to be had.
- If many buyers enter the market at the same time later in the year, there will be more demand and increased competition between buyers.
- When interest rates drop, and people can borrow more, property prices tend to rise.
- Delaying a move can have a financial cost. If your aim is to move closer to work or family, you’ll spend more on commuting or childcare in the interim.
- Property transactions can take longer than you expect to complete. If it’s your ambition to live in the catchment of an outstanding school, it’s good to have certainty.
- There’s an emotional cost to putting your life on hold. It’s one thing to delay a move for a few months, but if you’re keen to downsize or upsize, waiting means you’re left in limbo.
So, is it wiser to wait or more astute to act? Ultimately, only you can decide what’s right for you.
But when you feel it’s time for a change, we’re here to help.
For more insights about the local property market, contact us here at Sure Sales and Lettings today.
* Source: Knight Frank
** This article is an assessment based on the data and research available at the time of writing.