Will lower inflation boost the property market in 2024?
Inflation fell to its lowest level in two years during November, raising hopes that interest rate cuts and lower mortgage pricing could arrive sooner than expected next year. This is what Estate Agent Today has to say about it.
The latest Office for National Statistics data shows inflation was pushed down from 4.6% to 3.9% last month due to falling petrol and food costs. It was a larger than expected drop and may be good news for the property market if it fees into interest rate cuts and cheaper mortgages to boost buyer demand.
Karen Noye, mortgage expert at wealth manager Quilter, said:
“The positive inflation figures this morning might potentially mean that the Bank of England is minded to reduce interest rates faster than originally predicted. This will help reduce mortgage rates and coax more people into the market and prices will resume their upward trajectory whether for good or for worse. We should be under no illusion though, things will still be difficult for borrowers in 2024 and anyone hoping for a return to ultra-low mortgage rates is likely to be disappointed.”
Nathan Emerson, chief executive of agency trade body Propertymark, said:
“We are optimistic this may lead to a potential dip in interest rates in early 2024. This will help restore stronger confidence to the housing market and make the prospect of buying and selling a house more attractive to consumers.”
Bringing the year to a close we can testify that despite some reports in the media this has been another successful one for us and we are ready to celebrate over the holidays and come back fresh to help support all our customers and clients achieve their property goals.
Wishing you all a very Merry Christmas and a fantastic 2024 from all of the team at Bailey & Co.
Modified article taken in part from an article from: Estate Agent Today
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Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.