The Bank of England may have held interest rates at 4.75% in December – following two falls in 2024 – but some analysts predict another cut in February, which would be welcome news for property buyers, sellers, and in turn estate agents.
“Propertymark is keen to see interest rates lowered further when conditions permit to help spur growth in 2025,” said Nathan Emerson, CEO of Propertymark.
Emerson points out that the the impact of higher interest rates without doubt has had a profound impact across the housing market.
He continued: “Consumers need to feel a degree of confidence within their financial position to approach the buying and selling process, and it is essential that aspects such as inflation are managed robustly to keep long-term stability across the economy, which is needed for a healthy and secure housing market.”
Emerson’s comments follow the release of the latest Bank of England Money and Credit Report, which shows that the number of mortgage approvals and net mortgage lending both fell in November 2024.
The latest report found that mortgage approvals for house purchase dropped by 2,400 to a total of 65,700. However, this was still above the previous 12-month average of 60,400.
There was also a decline in remortgage approvals, which fell by 300 to a total of 31,200. Again, this was higher than the previous 12-month average of 30,000.
Jeremy Leaf, a north London estate agency boss, said approvals were “arguably the most interesting piece of the housing market jigsaw”.
Tomer Aboody, director of MT Finance, added: “The decline in net mortgage approvals after months of increases shows we can take nothing for granted, with consumer confidence perhaps taking a hit after the Budget. Further interest rate cuts, which are expected in the new year, should help boost those numbers and get them back on track.”
Bank of England multiple interest rate cuts expected in major boost for mortgage borrowers
