Estate agents lead calls for rate cut as inflation drops

20th March 2024
Home > News > Estate agents lead calls for rate cut as inflation drops

Reported by the Negotiator

Propertymark says it is the 'ideal time' to cut interest rates as inflation falls to its lowest level in more than two years.

Property agents are calling on the Bank of England to cut interest rates after the latest inflation figures showed a drop.

Inflation fell to its lowest level in more than two years this morning at 3.4%, increasing the pressure on the Bank’s Monetary Policy Committee to cut the base rate.

The Bank held the base interest rate at 5.25% for the fourth time running last month, and warned that a cut wasn’t imminent.

RESULT

It is due to announce the result of its latest meeting tomorrow, with speculation that it will hold the rate again at 5.25%.

Mortgages are creeping upwards, increasing the amount homeowners have to pay if they come off a fixed rate.

IDEAL TIME

Propertymark says now is the ‘ideal time’ to make a cut to give the housing market a boost.

This is an ideal time for the Bank of England to start considering a cut in interest rates.”

Nathan Emerson, CEO of Propertymark (main picture), says: “This is an ideal time for the Bank of England to start considering a cut in interest rates when they meet this month.

“Andrew Bailey, the Governor of the Bank of England, said recently that inflation does not have to fall to 2 per cent before the central bank starts considering cutting interest rate,” he says.

“Propertymark’s own Housing Insight Report shows that there has been an average 120 per cent increase in the number of potential buyers registered per member branch, and this is potentially an ideal time to revitalise the housing market.”


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