Archive 6th February 2025

Interest Rates to 4.50%.

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The Bank of England Reduces Interest Rates to 4.50%.

The Bank of England has announced that interest rates are to be reduced again, this time going down Interest Rates to 4.50%1.This is the second reduction in interest rates in recent times, following a long period of interest rate rises, where they peaked at a 16-year high of 5.25%.2What could the rate reduction announcement mean for my mortgage?If you have a fixed-rate mortgage then there won’t be any immediate changes, however reductions in the Bank of England base rate may mean that lenders start to offer more attractive deals in the coming months ahead. If you have a fixed-rate mortgage period coming to an end soon, then it’s the ideal time to get in touch to discuss your options accordingly.If you have a variable-rate mortgage, have a Bank of England tracker mortgage, or are on the Standard Variable Rate (SVR), then you may start to see changes to your monthly mortgage repayments, depending upon your lender and the deal that you have.Let us see how we can helpWe are here to provide you with the advice and guidance you need, and help with any queries you may have. There’s an overwhelming amount of information online, and some of it can be conflicting or confusing, so this is where we are here to help you.We would recommend that you contact us to let us look at your individual circumstances and provide bespoke information to allow you to make educated decisions.Contact us for a ReviewIt’s the ideal time to talk about your mortgageThe mortgage market is constantly evolving, and it’s a great time to start looking at your mortgage, whether you’re looking at moving home or have a remortgage coming up and want to know how much it could cost you.Chances are, the rates may be considerably different to your last remortgage, however these recent changes may be starting to soften the blow and you may be pleasantly surprised by the options available.It’s our mission to provide tailored mortgage advice for your exact situation, and can look across a wide range of deals not found on the High Street, so please book an appointment to see how we can help you.Please note, your home may be repossessed if you do not keep up repayments on your mortgage. Sources:Bank of England (2025) Current Bank Rate. Available at: https://www.bankofengland.co.uk/ [Accessed 27th Jan 2025]Bank of England (2025) Official Bank Rate History. Available at: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp [Accessed 27th Jan 2025]All the information in this article is correct as of the publish date 6th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Buyers Market

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Property Experts Forecast 2025 to be a Buyers Market

Buyers Market

The UK housing market is showing signs of a strong start in 2025, so looking like a Buyers Market with significant increases in new property listings and a rise in average asking prices. Estate agents Rightmove report that the average price of properties coming to market has increased by 1.7% (£5,992) this month, reaching £366,189—the largest new year price jump since 20201. Despite this growth, average prices remain approximately £9,000 below the peak reached in May 2024, reflecting ongoing affordability considerations for buyers1.

Increased Property Listings

The number of new property listings has risen by 11% year-on-year since Boxing Day, providing buyers with a broader selection of homes1. This influx has led to the highest number of properties available per estate agency branch for this time of year in a decade1. The increased supply is intensifying competition among sellers, who are being advised to price properties realistically to attract potential buyers1.

 Buyer Activity and Market Dynamics

Buyer interest has also surged, with a 9% increase in inquiries to estate agents and an 11% rise in agreed sales compared to the same period last year1. This suggests that buyers are responding positively to greater property availability and expectations of improving mortgage rates2. However, the market remains sensitive to external factors, such as interest rate fluctuations and impending stamp duty changes, which may influence buyer behaviour later in the year1.

Tim Bannister, Rightmove’s Director of Property Data, highlighted that while the market is experiencing a buoyant start, sellers must remain pragmatic with pricing strategies1. Overpricing could deter potential buyers, particularly in a market where affordability continues to be a critical concern. Bannister emphasised that realistic pricing is key to ensuring successful transactions in the current competitive landscape1.

Conclusion, is it a Buyers Market

Early indicators for 2025 suggest a vibrant housing market driven by increased supply and active buyer participation. While more property options benefit buyers, it’s wise for sellers to adopt realistic pricing to help aid changes of a sale in such a busy marketplace. With the market poised for growth, attention to economic factors like interest rates and policy changes will be crucial for both buyers and sellers as the year progresses.

Sources

  1. The Guardian (2025). UK housing market ‘starts new year with a bang’, says Rightmove. Available at: https://www.theguardian.com/business/2025/jan/20/homes-uk-housing-market-new-year-rightmove [Accessed 20 Jan 2025]
  2. Rightmove (2024) Rightmove’s 2025 Housing Market Forecast. Available at: https://www.rightmove.co.uk/press-centre/rightmoves-2025-housing-market-forecast/ [Accessed 20 Jan 2025]

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All the information in this article is correct as of the publish date 30th January 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.