Bank of England Cuts Base Rate: Positive News for Buyers and Sellers

The Bank of England has lowered its base rate by 0.25% to 4.5%, a move that will bring cheaper loans and lower mortgage rates, supporting increased activity in the property market. This is the third rate cut since August, creating a favourable environment for both buyers and sellers as we approach the winter months.

Myles Moloney, Area Sales Manager at Chase Buchanan says: “The Bank of England’s first rate cut of the year sends an encouraging signal to both buyers and homeowners facing mortgage renewals. This reduction is likely to prompt more house hunters to continue their search, leading to a more competitive market in the months ahead. We recommend that buyers maintain close contact with their trusted estate agent, who will have up-to-date market insights, help ensure all necessary paperwork is in order, and assist in finding the right property more efficiently.”

While the cut provides lower borrowing costs, it also means reduced returns for savers. House hunters are expected to take the opportunity to purchase properties before 31st March 2025, when the new Stamp Duty rates take effect. Overall, these changes are anticipated to drive increased activity, strengthening the housing market as the year draws to a close.

Dean Vellender of EasyLife Alliance advises: “From March 31, 2025, several Stamp Duty changes will come into effect, meaning that delaying your purchase could add thousands of pounds to the upfront cost. To find out how much you can borrow and understand the associated costs, now is the time to book an appointment with one of our mortgage advisers at EasyLife Alliance.”

At Chase Buchanan, we’re committed to helping you make the most of this market shift. Whether you’re a first-time buyer, selling your home, or expanding your property portfolio, our team is ready to assist. To discuss your potential property plans with one of our agents, please contact your local branch.