Jackson-Stops comments on Bank of England interest rate hold

Nick Leeming, Chairman of Jackson-Stops, comments on the news that the Bank of England holds interest rate at 4.75%.

“Today’s decision reflects the ongoing challenge of balancing accelerated pay growth with persistent inflation.

“This cautious approach is understandable as the Bank seeks more clarity and fiscal headroom before considering a reduction in rates.

“Rates rise much quicker than they fall but the Bank of England must avoid cutting too soon and undermining the progress being made on inflation.

“The macroeconomic environment remains complex, with the Autumn Budget introducing tougher measures for businesses, potentially leading to higher costs for consumers.

“However, the Bank’s decision to hold rates steady provides a degree of stability, which is crucial for both the economy and the property market.

“For the property sector, mortgage customers will continue to carefully evaluate their financial options and long-term plans.

“Stability in government and economic growth is essential to bolster buyer confidence, which in turn can drive increased sales and completions.

“As we look ahead, a steady economic footing will be key to enabling the Bank of England to gradually reduce rates.

“Across the Jackson-Stops network we expect house prices to remain on par with 2024 and for Q1 to be particularly active as buyers strive to complete transactions before the end of current Stamp Duty incentives.

“While the immediate impact of the rate decision may be mixed, the longer-term outlook remains cautiously optimistic.

“A stable economic environment will ultimately support a healthier property market, benefiting both buyers and sellers.”

Kindly shared by Jackson-Stops