Predicted fall in base rates to fuel rebound in property market

A predicted fall in base rates is expected to fuel a rebound in the property market, according to analysts. Falling mortgage rates and the possibility of the Bank of England cutting borrowing costs are set to reverse the dip in property values. Steadily falling mortgage rates and an expected surge in customer demand will push up house prices by 5% in 2024, according to estimates from Pantheon Macroeconomics. Capital Economics said that another year of declining house prices could be “avoided altogether” as the economy improves. The Bank's ratesetting monetary policy committee is expected to cut interest rates, with market estimates pointing to a reduction of one percentage point. Interest rate cuts will push down mortgage rates, leading to a surge in average house prices. Despite low levels of transactions, experts do not expect significant falls in house prices in 2024. 

The Times (03/01/2024)