The base rate which determines how much banks charge when you borrow money has today been cut by the Bank of England from 5.25% to 5%. This will be a great relief for first time buyers as it is the first cut in over four years.
The Bank of England last cut interest rates in March 2020 when the figure was at an all-time low of just 0.1%. But in December 2021 they started increasing borrowing costs and in August 2023 they increased the rate to 5.25% where it has stood until today. The Bank of England has been raising interest rates to bring down inflation with the idea that if people have less money to spend the demand for goods would go down and lower prices.
Nathan Emerson, CEO of Propertymark, comments,
“Today’s rate cut is excellent news for the housing market and no doubt a huge sigh of relief for those who have felt the pain of higher interest rates for the last two years. Summer is traditionally a busy time of the year for the housing market, and today’s base rate cut should hopefully provide a new wave of confidence and affordability for many. With a new government in power that is committed to delivering near two million new homes, Propertymark hopes today’s news is a real turning point for homeowners and those who aspire to buy.”
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Lynda Clark
Lynda has been a journalist all her working life. She started as an indentured reporter on the Streatham News. After three years she joined Woman’s Weekly in the fashion department and eventually worked her way up to being Associate Fashion Editor. After 13 years she decided to go freelance and wrote for many newspapers and magazines. Her interest in homes and interiors began when she became Editor of Homestyle magazine. Having always wanted to start her own magazine she launched Spaces – an international magazine aimed at people who are passionate about architecture and design. After five years she sold the title and began working at First Time Buyer magazine. She quickly became Editor and eventually CEO of the company. She is truly passionate about getting first timers on to the property ladder and supports all the housing associations, developers, legal and financial experts helping them to spread the word about the affordable housing options open to first time buyers.
