Falling mortgage rates bolster housing market.

2 February 2024

Hope seems to be on the horizon for the housing market as the year gets off to a promising start.

The decision from many mortgage lenders to reduce rates seems to have had the desired effect, as buyer interest has noticeably increased. Lenders are competing to offer the best deals. At the end of the first week of January, according to Zoopla, there were 10% more prospective buyers than in 2023.

TwentyCI has reported that agreed property sales reached a nine-month-high in December, with many commentators now hopeful that this signifies a market that is slowly but surely getting back on track. Oxford Economics expects the first cut to Bank Rate will come in May, thus relieving some of the pressure that many borrowers are under.

This could further increase the demand for housing, which, at the end of December, Zoopla has said was 19% higher than the previous year. Higher levels of demand are likely to have a knock-on effect on house prices, which could continue to stop falling if sellers no longer need to discount their property to make a sale.

🚨 Data accurate as of the date of publication –02.02.2024

🚨Think carefully before securing debts against your home.  Your home may be repossessed if you do not keep up repayments on your mortgage.

🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.

 

Source: Quilter Financial Planning – Residential Property Review, January 2024

Rate this post

Do you need professional advice or a no obligation quote?

Ask us for a quote

Articles

młodzi posiadacze kredytu Young mortgage holders play a risky protection game
26 August 2025
Some three in 10 homeowners aged between 18 and 34 have no protection cover in...
garderoba - dressing room Why dedicated dressing room spaces are in demand
23 August 2025
More than just storage, they offer convenience and hotel-style luxury, potentially adding up to £40,000...
przegląd rynku nieruchomości Summer property market update – key trends, ongoing pressures and record highs
22 August 2025
As summer gets underway, the housing and mortgage sectors are showing a blend of notable...
Insurance quote