A Fresh Spark of Confidence – Good News for Buyers and Sellers
Today, the Bank of England has reduced its base interest rate from 4.25% to 4%, marking the fifth cut since August 2024—and reaching its lowest point since March 2023.
What This Means for the Property Market
For buyers, lower borrowing costs could translate into improved affordability, especially for those with tracker or variable rate mortgages—many of whom may see monthly repayments fall by £20–30. Meanwhile, sellers benefit from this renewed activity, as buyers feel more confident and financially ready.
At Paton & Co, we’ve navigated a challenging market this year—and today’s announcement couldn’t be more timely. With the base rate now back at 4%, we’re hoping to see an uptick in buyer interest. Lower borrowing costs may encourage more viewings, offers, and transactions ahead of the Autumn Budget in October.
In a market that’s feeling the strain, this rate decision provides the breath of fresh air we’ve been eagerly awaiting.
What to Expect Next
- Buyers: If you’re waiting to make your move, this is an ideal moment.
- Sellers: Now is a great time to re-engage the market. Increased buyer confidence could see properties move quicker than in recent months- although pricing will still remain key.
- All clients: The Bank of England has emphasised that future rate adjustments will be “gradual and careful”—so this rate could provide a stable landscape for the months ahead.
Looking Ahead to the October Budget
The Government’s Autumn Budget is just around the corner so this news gives a window of opportunity. The rate cut strengthens the outlook for the residential property market today and we will be monitoring developments closely so we are ready to guide you through any subsequent shifts as we approach and navigate the Autumn Budget.
If you’d like tailored advice, property valuations, or just a friendly chat about your options, please reach out—we’re always happy to help.
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