After several months of stubbornly high inflation, the government’s target of 2% was finally met in May, for the first time since July 2021.
This comes as welcome news for the property market, which today received an additional boost in the form of the latest BoE’s interest announcement.
According to news just in, the benchmark rate of 5.25% will remain unchanged, and this will no doubt have positive ripple effects for the property industry, which has already begun to enjoy tentative signs of recovery in recent months.
With the economic landscape continuing to improve, the current trajectory of buyer demand and house prices looks set to continue, with the average price of a house up 0.9% in the year to March.
This growth in house prices is owed, primarily, to an uptick in top-of-the-ladder homes coming to the market, coupled with the net effect of more enticing mortgage deals from lenders.
With any luck, today’s lower swap rates will afford lenders even more wiggle room on rates as the summer unfolds, and this will bode well for market activity and industry growth, as we head into the autumn.
Summary
With data beginning to indicate a ‘normalisation’ in the property sector, all eyes will be on Q4, and whether the still-elevated services inflation will ultimately lead to a policy rate reduction.
Add to this, the speculation of a ‘post-election bounce,’ and it’s easy to see why analysts are cautiously optimistic that this autumn could be the turning point that home-buyers and sellers have been waiting for, to finally action their onward moves.
For more details on the Maidenhead property market, please contact Braxton Estate Agents on 01628 674234 or email property@braxtons.co.uk