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UK Housing Market Predictions 2026

2026 UK House Price Outlook

The UK housing market is set for a stable, steady year in 2026, with national house prices expected to rise by around 2%. While this is modest growth, it marks a welcome return to balance after several years of uncertainty. Buyers have more choice, sellers are becoming more realistic with pricing, and agents are perfectly positioned to guide the market with expertise.

A calmer, more stable market

After a period of volatility, 2026 is offering both buyers and sellers a calmer environment. Increased stock levels mean those looking to move have better choice and less pressure, while sellers who price sensibly are continuing to achieve strong interest. With clearer conditions and fewer bidding wars, the market is becoming more predictable — ideal for confident, well-supported moves.

Budget clarity could boost activity

The upcoming Budget remains a key talking point. Any adjustments to property taxes could encourage hesitant buyers to re-enter the market, potentially increasing activity in the months following the announcement. Many prospective movers are currently in a holding pattern, meaning the release of this “pent-up demand” could bring renewed energy to 2026.

Strong fundamentals for long-term growth

Forecasters expect the wider economic picture to steadily brighten after 2026, with inflation easing, GDP improving and interest rates set to gradually reduce. These trends are expected to support stronger price growth from 2027 onwards. Buyers purchasing in 2026 may therefore benefit from improved affordability ahead and meaningful capital growth over the medium term.

Regions with the strongest potential

More affordable regions are predicted to outperform the national average over the coming years. The North East, Yorkshire & The Humber, Scotland, Wales and the North West all show strong value and growth potential, making them especially appealing for both homebuyers and investors. The Midlands are also expected to perform above average. London, while slower in near-term growth, continues to offer long-term stability and lifestyle appeal.

What this means for buyers and sellers

Buyers in 2026 will benefit from greater choice, more negotiating power and fairer pricing across much of the country. It’s a year where careful, strategic purchasing can pay off. For sellers, accurate pricing and strong presentation are more important than ever — well-marketed, sensibly priced homes are still selling quickly. Estate agents who offer expert guidance, clear valuations and strong digital marketing are well positioned to thrive in this balanced market.

Looking ahead

While 2026 may not bring dramatic price rises, it offers something arguably more valuable: stability. This steady foundation creates the ideal conditions for long-term planning, smart investment and confident moving. With medium-term forecasts pointing to stronger growth through to 2030, buyers and sellers who act in 2026 are well placed to benefit from improving conditions ahead.

Looking to move home in 2026?

Benwell Daykin provides free property valuations. Contact us today.

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Rachel Reeves and Selective Licensing: What Landlords Can Learn from Her Mistake

How Not to Get Caught Out with a Selective Licence – Unlike Rachel Reeves

It’s been all over the news — Chancellor Rachel Reeves has found herself in hot water after one of her rental properties reportedly didn’t have the required selective licence. It’s a reminder to landlords everywhere: even if you have an agent managing your property, you’re still legally responsible for compliance.

What Is a Selective Licence?

A selective licence is a legal requirement in certain areas where local councils want to improve housing standards and ensure responsible property management. It applies to most private rented properties within designated zones — and landlords must apply for a licence before letting their property.

What Happened with Rachel Reeves?

Rachel Reeves’ property reportedly fell within a selective licensing area. Her estate agent knew this, informed her, and even said they would apply for the licence on her behalf — but it seems the application was never actually completed.

While the agent’s failure is concerning, the legal responsibility still lies with the landlord. Even if your agent promises to handle it, you remain accountable for ensuring the licence is in place.

What Her Estate Agent Should Have Done

A competent and compliant estate agent should always:

  • Check whether the property is in a selective licensing area
  • Inform the landlord immediately if a licence is required
  • Submit the application promptly and track its progress
  • Confirm in writing once the licence has been successfully approved
  • Keep full records of all communication and documentation

Good communication and follow-through are essential — not just promises.

What We Do at Benwell Daykin

Here in Nottingham, a large part of the city falls under the Nottingham City Council Selective Licensing Scheme. If your property is within the city council boundary or Gedling Borough Council, it’s very likely you’ll need a licence. Properties outside this boundary (for example, in parts of Broxtowe or Rushcliffe) are not affected — but it’s always best to check.

At Benwell Daykin, we take selective licensing seriously. From the moment we begin managing a property, we check whether a licence is required — especially for landlords with homes inside the Nottingham City Council boundary.

If a licence is needed, we handle the entire process efficiently and keep our landlords informed every step of the way. We never assume “someone else will sort it”. Every application is tracked until it’s complete, and we confirm once approval has been granted.

With us, you can be confident that your property is fully compliant — and your reputation is protected.

What Could Happen to Rachel Reeves?

Failing to hold a selective licence is a serious matter. The local council can issue civil penalties of up to £30,000, or even prosecute the landlord. Tenants can also apply for a Rent Repayment Order, potentially forcing the landlord to repay up to 12 months of rent received during the unlicensed period.

It’s a costly and easily avoidable mistake — especially when your agent stays on top of compliance from the start.

Stay Compliant with Benwell Daykin

If you’re not sure whether your property needs a selective licence in Nottingham, get in touch with Benwell Daykin today.

We handle everything from initial checks to completed applications, so you never get caught out by the rules or end up facing unwanted headlines.

You can also read our full guide on Nottingham Selective Licensing.

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Interest Rate Drop – What Does This Mean For Mortgages?

Mortgage Rates Drop – Is Now the Time to Secure Your Best Deal?

After years of turbulence in the housing and mortgage market, we may finally be seeing the first real signs of stability returning. Recent news that two-year fixed mortgage rates have fallen below five-year rates for the first time since 2022 has caused a bit of a stir—not just among property industry professionals, but also among homeowners, first-time buyers and landlords. At Benwell Daykin Estate Agents, we don’t just sell and let properties—we also offer clear, tailored mortgage advice to help you make sense of the numbers and secure the best possible deal. With the latest rate changes, many people are asking the same question: Should I act now?

What’s Changed in the Mortgage Market?

The Bank of England has made the decision to cut the base rate by 0.25 percentage points to 4%. This move was widely anticipated as inflationary pressures eased, but its impact on mortgage pricing has been swift. For the first time in nearly three years, two-year fixed rates have dipped below five-year deals. Historically, this has been the norm, but the upheaval following the 2022 mini-budget turned the market on its head, with lenders pricing shorter-term fixes higher due to uncertainty. Now, average two-year fixed rates sit around 5%, slightly lower than the 5.1% average for five-year terms. And for borrowers with a strong credit profile and good loan-to-value (LTV) ratio, some lenders are offering two-year rates as low as 3.8%. This shift suggests lenders are feeling more confident about the market’s direction—something we haven’t seen for a while.

Why This Matters for Homeowners and Buyers

For anyone on a variable or tracker mortgage, the benefits are immediate—monthly payments will likely fall in line with the base rate cut. But for those on fixed deals or looking to buy, the picture is a bit different. Here’s why the changes could be significant for you:

1. Opportunity for Lower Payments in the Short Term – A competitive two-year fix could mean lower monthly payments compared to sticking with your current deal or opting for a longer term at today’s rates.

2. Flexibility – If rates continue to drop in the coming years, being on a shorter fix allows you to refinance sooner and potentially secure an even better rate later.

3. Confidence Boost for Buyers – Lower rates can improve affordability calculations, meaning you might be able to borrow slightly more or widen your choice of properties.

A Word of Caution

While this is positive news, it’s important not to get caught up in “lowest rate fever” without looking at the bigger picture. Mortgage rates are only one part of the equation. You also need to consider arrangement fees, early repayment charges, flexibility to make overpayments, and whether your circumstances might change during the term. This is where speaking to a qualified mortgage adviser—someone who can look at your full financial situation—becomes invaluable. You can speak to someone today by calling 0115 990 2007.

The Benwell Daykin Approach to Mortgage Advice

At Benwell Daykin, we believe that mortgage advice should be personal, jargon-free and focused entirely on your best interests. Whether you’re a first-time buyer, remortgaging, or expanding your buy-to-let portfolio, we start by understanding you. Our free initial mortgage advice session is designed to: review your current deal and see if you could save money; explore the full range of mortgage products from across the market—not just one or two lenders; run affordability and repayment calculations tailored to your budget; highlight any hidden costs or restrictions in potential deals; and help you decide whether now’s the right time to fix, or if waiting could be wiser. We know that your mortgage is likely the biggest financial commitment you’ll ever make. That’s why our advisers take the time to guide you step-by-step, without pressuring you into a decision.

Why the Market Shift Feels Different This Time

Mortgage rates have had their ups and downs in recent years, but the fall we’re seeing now is being met with cautious optimism from industry experts. This is because it’s not just about cheaper borrowing—it’s about the return of market balance. For most of the past three years, the so-called “inverted curve” (where short-term rates were more expensive than longer ones) signalled lender uncertainty. Now, with two-year rates back below five-year deals, it reflects a belief that inflation will remain under control and the Bank of England won’t have to keep rates elevated for as long as feared. For homeowners, this could be the start of a more predictable, less volatile lending environment. And that’s good news whether you’re remortgaging this year or just starting to think about buying.

What This Means for First-Time Buyers

If you’re stepping onto the property ladder for the first time, these rate cuts could improve your affordability calculations, allowing you to borrow more or access a better deal. However, it’s important to remember that property prices, deposit requirements, and credit history still play a big role in what you can secure. That’s where our advisers can help you plan your move strategically—sometimes even months in advance—so when the right property comes up, you’re ready to act.

What This Means for Those Remortgaging

If your current deal ends within the next 6–12 months, now is the time to start exploring your options. Many lenders will allow you to lock in a new rate up to six months before your existing deal ends, which could protect you against future rate rises. Even if you’ve still got longer left on your fix, it’s worth checking whether an early switch could still save you money in the long run—especially if the rate difference is significant.

The Risk of Waiting Too Long

While rates have dropped, there’s no guarantee they will keep falling. Economic conditions, inflation data, and central bank policy can change quickly. If you’re in a position to secure a good rate now, it might be safer than holding out for something marginally better that may never materialise. Our role at Benwell Daykin is to help you weigh the potential benefits of acting now against the possible gains of waiting—backed by real market data and lender insights.

Why Choose Benwell Daykin for Mortgage Advice?

We work for you, not the banks – our recommendations are based solely on what’s right for your situation. Whole-of-market access – we can search deals from dozens of lenders, including smaller building societies and specialist providers. Clear, no-nonsense guidance – we explain the pros and cons in plain English. Free initial consultation – no cost, no obligation, just expert insight to help you make an informed choice. Local knowledge – based in Nottingham, we understand the property market in your area.

Next Steps – Take Control of Your Mortgage

If you’re a homeowner, first-time buyer, or landlord, this shift in rates could be your opportunity to get ahead of the curve. But the key is acting on accurate, personalised advice—not guesswork. Your mortgage shouldn’t keep you awake at night. Let us take the stress out of the process and help you find the deal that fits your life, not just your numbers.

Book your free initial mortgage advice session today with Benwell Daykin Estate Agents.

Call us on 0115 990 2007 or contact us here.

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Property Price Report Summer 2025

As we move well into summer 2025, the UK property market shows increasing signs of stabilisation — with modest growth, renewed buyer activity, and a cautiously optimistic outlook. Buyer demand is also picking up again following the impact of the April stamp duty changes.

Latest reports from major lenders show UK house prices remained steady in June. The average UK property price currently sits between £296,000 and £297,000, marginally lower than earlier in the year. Annual house price inflation is estimated between 2.1% and 2.5%, with modest month-on-month variations.

More affordable markets — typically those with average values under £200,000 or £250,000 — are continuing to outperform more expensive areas. These lower-cost regions are seeing annual growth of 2.7% to 3.5%, while very high-value areas (those over £500,000) are seeing minimal or even negative price changes.

The luxury and country house market is also showing signs of movement. Sales of high-end country homes have increased by around 7% year-on-year, although prices in that segment have dropped slightly over recent months.

Forecasts suggest UK-wide house price growth of between 3.5% and 4% through the remainder of 2025, assuming economic confidence holds and mortgage rates remain relatively stable.

Overall, the UK housing market this summer is shaping up to be a buyer-friendly environment: with plenty of supply, moderate discounting, and strong buyer activity — particularly in northern and more affordable regions. Sellers are often accepting offers around 3% below asking price, and sales pipelines are the healthiest they’ve been in several years.

Nottingham Property Market

Here in Nottingham, the local property market reflects many of the broader national trends but with an even more optimistic tone. At Benwell Daykin, we’ve seen sustained buyer interest, competitive pricing, and a clear sense of momentum throughout the county and in Ruddington.

Latest Prices and Trends

The average house price in Nottingham as of April 2025 stands at approximately £192,000, marking a 4.8% increase compared to the same time last year. This rate of growth outpaces the wider East Midlands, which saw an average rise of 3.8%, and sits well above the national growth average.

Terraced houses in Nottingham have seen the strongest growth, rising by 5.6% year-on-year. Semi-detached and detached homes have both experienced gains of around 3.1%, while flats and maisonettes remain the most affordable segment, with average prices around £133,000.

For first-time buyers, the average property purchase is now around £177,000, a 5.2% increase from the previous year. Owner-movers, meanwhile, are typically paying closer to £229,000.

The private rental market in Nottingham continues to thrive. Average rents have risen to £976 per month — a 7.3% increase year-on-year. One-bed properties rent for around £707 per month, three-bed homes for over £1,000, and detached rentals for approximately £1,268 per month.

What’s Driving the Nottingham Market?

  1. Affordability and Demand
    Nottingham remains one of the most affordable major cities in the UK. This affordability is attracting a wide range of buyers, from first-timers to families and investors. Areas such as Carlton and Sneinton are particularly popular due to strong rental yields and good transport links.

  2. Regional Growth Prospects
    Nottingham is forecast to continue outperforming much of the East Midlands. Local agents and analysts expect annual growth of 3% or more for the foreseeable future, driven by ongoing demand and constrained housing supply.

  3. Regeneration and Infrastructure
    Regeneration projects, including the ongoing transformation of the Broadmarsh area, rumours of improved tram networks and new housing developments, are bolstering the city’s appeal. These improvements are helping to raise the profile of central Nottingham and nearby areas.

  4. Post-Stamp Duty Adjustment
    Following a surge in activity earlier this year due to stamp duty changes, the market has now settled into a more stable rhythm. Correctly priced properties continue to sell quickly, while overpriced listings are seeing longer time on the market.

Summer 2025 Snapshot

  • Average Nottingham property prices are in the region of £192,000 to £195,000.

  • Annual growth is around 4–5%, particularly strong in terraced and semi-detached homes.

  • Buyers have more choice and are often able to negotiate discounts of 2–3%.

  • Investor hotspots include Carlton, Beeston and Sneinton — areas with strong rental demand and capital growth potential.

For Sellers

If you’re considering selling your Nottingham home, pricing is key. At Benwell Daykin, we recommend setting realistic asking prices based on recent comparable sales. Well-presented properties at the right price are still generating strong interest, and many are receiving multiple viewings within days of listing.

For Buyers and Investors

Now is a promising time to buy in Nottingham. First-time buyers are returning to the market, and investors are capitalising on strong rental yields of 5–6% in certain areas. With a stable price environment and strong long-term prospects, Nottingham continues to offer excellent value for money.

In Summary

  • The UK housing market in summer 2025 is steady, with moderate buyer interest, ample supply, and flat to slightly negative price movement overall.

  • Regional and affordable markets, particularly in the Midlands and North, are outperforming more expensive southern areas.

  • Nottingham stands out with nearly 5% annual growth, strong rental demand, and increasing investment in infrastructure and regeneration.

  • It’s a buyers’ market in many respects, but sensibly priced properties are selling well.

Thinking of selling or just curious what your property is worth?

Contact Benwell Daykin Estate Agents today for a free, no-obligation valuation.

Call us on 0115 990 2007 — we’re here to help you make the most of your move.

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Bank of England Cuts Interest Rates Again

The Bank of England has lowered its base interest rate to 4.25%, a slight drop from the previous 4.5%. This is the fourth cut within the past year as policymakers continue to steer the economy through uncertain conditions. The decision reflects ongoing concerns about inflation and global trade tensions.

Why Has The Bank of England Made This Decision?

The central bank is facing a delicate balancing act. While inflation remains slightly above target, there’s growing pressure from slowing economic activity and trade disruptions. Rate cuts are intended to make borrowing cheaper, stimulate investment, and support consumer spending — especially in the face of international headwinds.

Bank of England Governor, Andrew Bailey, emphasised that future rate changes will likely be slow and cautious. While he avoided giving firm predictions, his comments suggest that additional cuts are possible if economic conditions remain fragile. His tone was steady, pointing toward a carefully managed decline in rates over time.

But not all members of the Bank’s Monetary Policy Committee were aligned. While a majority supported the 0.25 percentage point cut, some favoured an even deeper reduction, and others argued for no change at all. This division highlights the complexity of the economic situation and differing views on how best to respond.

What This Means for Mortgage Rates

For borrowers, especially those on variable-rate loans or tracker mortgages, the cut could lead to slightly lower monthly payments. However, with most homeowners locked into fixed deals, the immediate impact may be limited. Mortgage rate drops don’t happen immediately, but if you are coming to the end of your fixed period, remember to speak to a qualified mortgage advisor within the next month or so.

Average two- and five-year fixed deals are trending lower, offering some relief to those renewing their deals. Roughly 600,000 households with tracker mortgages will benefit more directly, with some seeing reductions of around £30 a month.

The Outlook for the Property Industry

The latest reduction in interest rates to 4.25% is likely to offer a modest boost to the property sector, particularly by improving affordability for prospective buyers. Lower borrowing costs can make mortgages slightly cheaper, encouraging more people to enter the housing market or upsize. This could help support house prices and transaction volumes, both of which have shown signs of softening in recent months.

However, the impact will be gradual, as the majority of homeowners remain on fixed-rate deals that won’t change until their renewal. For developers and investors, cheaper financing may ease pressure on project costs and improve margins, though wider economic uncertainty and cautious consumer sentiment are likely to temper any major surge in activity.

Ready To Make That Move?

Ready to make the most of this further drop in interest rates?
As more buyers look to enter the market, now may be a great time to sell. Book your free property valuation. You can also call us on 0115 990 2007.

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Easter Colouring Competition 2025

Benwell Daykin’s annual colouring competition is back for 2025!

Every year, Benwell Daykin Estate Agents runs a competition in line with Easter.

The competition has several different age categories, with a simple Easter design for children and a more complex design for adults.

Whether you have children who would like to take part, or if you simply want to put your adult colouring skills to the test, download our 2025 Easter designs here.

Please return entries to the office on High Street in Ruddington by 18th April 2024.

And if you’d like to find out how much your property is worth with a free valuation, we can speak to you about this at the same time!

Good luck to everyone taking part and Happy Easter!

Colouring competition downloads:

Benwell Daykin Childrens Easter Competition 2025
Benwell Daykin Adults Easter Competition 2025

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How to Sell Property Fast

Selling your home can take an average of 4 months from start to finish. However, the actual time frame can vary depenidng on a number of factors, including chain size, your solicitors, your mortgage and much more.

If you’re in a hurry to sell, even a single day can feel like a long wait.

To speed up the process, you need to be strategic. By taking the right steps, you can make your home more appealing and increase your chances of a quick sale. Here are ten top tips to help you sell your home faster.

1. Fix Any Outstanding Issues

Unless you’re marketing your home as a fixer-upper, buyers will expect a well-maintained property. Any minor defects—such as cracked walls, leaky taps or tired looking paintwork can make a home seem like too much work. Address these issues before listing your home to ensure buyers see it in the best light. Hiring a tradesperson for a few quick fixes could make all the difference. Additionally, check that all doors and windows function properly, patch up any peeling paint, and ensure appliances are in working order. A well-maintained home will appear move-in ready, making it more appealing to buyers. Buyers are also less likely to ask for a major discount if everything looks in good condition!

2. Enhance Your Curb Appeal

First impressions are crucial when it comes to selling a property. When potential buyers arrive, their initial reaction will be based on the exterior of your home. Clean the windows, replace missing roof tiles, mow the lawn and jet-wash the driveway. Even hiring a contractor to do this for you is worth the investment if it makes your property stand out on the street. A well-maintained exterior will draw buyers in before they even step inside. Consider adding potted plants, trimming the hedge, removing weeds from the driveway and ensuring outdoor lighting is functional to create an inviting atmosphere.

sell property fast

3. Declutter the Property

Over time we all accumulate belongings, but excessive clutter can be a major turnoff for buyers. When a home is filled with items, each room can look smaller and less inviting. Before taking listing photos or arranging viewings, declutter every room. Consider putting excess belongings in storage to create a more spacious and inviting atmosphere. A neutral, clean space will also allow buyers to project their own vision onto the property, making it easier for them to commit.

4. Choose the Right Estate Agent

Your choice of estate agent can make or break the speed of your sale. While online property portals are popular, they may not provide the personalised service you need. Look for an estate agent with in-depth local knowledge who understands the target market and can highlight the best aspects of your area. Pricing alone shouldn’t be your deciding factor—work with someone who is genuinely motivated to sell your home quickly and efficiently. Ask potential agents about their marketing strategies, their experience with similar properties, and how they plan to attract the right buyers.

Benwell Daykin is trusted by hundreds of buyers and sellers as a go-to estate agent in Nottingham. You can call us to chat about your property on 0115 990 2007 or by using our contact page.

estate agent nottingham selling property fast

5. Opt for a Neutral Decor

Buyers need to envision themselves living in your home, and bold or outdated decor can be off-putting. While some buyers might be willing to renovate, many will be deterred by features like floral carpets, retro wallpaper, or pink bathroom suites. Repainting with neutral colours can create a blank canvas, making your home more appealing to a wider audience. This simple update can also improve the quality of your listing photos and attract more interest. Stick to soft, modern tones like greys, whites, or beiges to create a light and airy feel that will appeal to a broad range of buyers. Also try to keep away from Magnolia, we’re no longer living in the early 2000s.

neutral decor

6. Be Flexible on Price

Pricing plays a major role in how quickly your home sells. While you naturally want to achieve the highest price possible, a willingness to negotiate can speed up the process. If selling quickly is your top priority, consider adjusting your asking price to make your home more competitive on the open market. This doesn’t mean undervaluing your property—just ensuring it stands out as a great deal for potential buyers. Keep an eye on market trends, analyse the competition and be prepared to offer incentives like covering closing costs or including furniture to sweeten the deal.

7. Maximise Your Viewings

Once you’ve prepared your home, it’s time to focus on creating the best experience for buyers during viewings. A deep clean—including carpets, upholstery, and surfaces—will ensure your home looks and smells fresh. If you have pets or small children, arrange for them to be elsewhere during viewings to avoid distractions. Additionally, leave a parking space available for the buyer so they feel welcomed rather than inconvenienced. Open curtains and blinds to let in natural light, ensure the home is at a comfortable temperature and add finishing touches like fresh flowers or lightly scented candles to create a welcoming environment.

8. Invest in Professional Photography

Your listing photos are the first thing potential buyers will see, so high-quality images are crucial. A professional photographer will know how to highlight your home’s best features, use the right angles, and capture lighting that makes your space look inviting. Avoid taking photos on a gloomy day, and ensure your home is tidy before the shoot. Great photos can attract more online views, increasing the chances of securing an in-person visit.

Professional photography is often included in your agency fee if you hire a good estate agent such as Benwell Daykin.

9. Utilise Online and Social Media Marketing

Beyond just listing your property on estate agency websites, take advantage of social media platforms to promote your home. Share high-quality images and engaging descriptions on Facebook, Instagram, and Twitter. Join local community groups where potential buyers may be looking for properties. You can also consider creating a virtual tour or video walkthrough to give potential buyers a better feel for the home before scheduling a visit.

10. Highlight Key Selling Points

Every home has unique features that make it stand out—be sure to highlight these! Whether it’s a newly renovated kitchen, a spacious back garden, great transport links or proximity to great schools, emphasising these selling points can make a difference. Ensure your listing description is compelling, and all your great property features are included on the online listing and in the brochure. Buyers will appreciate the extra information and be more likely to remember your home after multiple viewings.

large garden

Need Help Selling Your Home?

If you’re looking to sell your property quickly and efficiently, and for a great price, talk to Benwell Daykin today.

You can arrange a free property valuation today calling us on 0115 990 2007 or by using our contact page.

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Mortgage Relief at Last? Bank of England Slashes Interest Rates

Bank of England Cuts Interest Rates Amid Economic Stagnation

The Bank of England has announced its first interest rate cut of the year, reducing the base rate from 4.75% to 4.5%. The decision was made at the latest meeting of the Monetary Policy Committee (MPC), with all nine members voting in favour of a reduction. While seven members supported a 25-basis-point cut, two advocated for a more aggressive approach, favouring a 50-basis-point reduction.

This move was widely anticipated by financial markets and economists and is not unexpected.

Inflation Slows, Prompting Rate Cut

One of the key factors behind the decision was the latest inflation data, which showed a lower-than-expected increase in consumer prices. The annual inflation rate declined from 2.6% to 2.5%, defying expectations that it would remain steady or rise slightly to 2.7%. This unexpected slowdown provided the Bank of England with additional justification to lower borrowing costs, aiming to support economic growth without risking a surge in inflationary pressures.

Inflation has been a significant concern for policymakers in recent years, with persistent cost-of-living pressures impacting households and businesses alike. However, with inflation now edging closer to the Bank of England’s 2% target, the case for maintaining higher interest rates has weakened.

Economic Stagnation Increases Pressure

In addition to the inflation slowdown, recent economic data has painted a concerning picture of stagnation. UK gross domestic product (GDP) figures have shown minimal growth, putting further pressure on policymakers to stimulate the economy.

After contracting by 0.1% in both September and October, the economy recorded a marginal 0.1% expansion in November. While this slight growth prevented the UK from slipping into a technical recession, it did little to alleviate concerns over economic stagnation. The Bank of England’s rate cut is expected to provide some relief by reducing borrowing costs for businesses and consumers, potentially encouraging investment and spending.

Implications for the Property Market

The interest rate cut will have mixed implications for different groups within the economy. For mortgage holders, especially those on variable-rate or tracker mortgages, the reduction in the base rate could translate into lower monthly payments, easing financial pressures. Prospective homebuyers may also find mortgage rates becoming slightly more affordable, potentially boosting activity in the housing market.

Looking Ahead Within The Property Space

The Bank of England’s decision to cut interest rates marks a shift in monetary policy after a prolonged period of tightening aimed at controlling inflation. However, the big question now is whether this is just the beginning of a new cycle of rate cuts – and how it will shape the UK property market in the coming months.

If inflation continues to ease and economic conditions remain weak, the Bank may opt for further reductions later this year. This could provide more stability for homeowners and encourage prospective buyers to return to the market with renewed confidence. Mortgage lenders are likely to adjust their rates gradually, meaning homebuyers could see slightly better deals over time. However, the extent of these benefits will depend on how aggressively the Bank of England continues to cut rates.

One potential consequence of lower borrowing costs is increased demand for property. As mortgage rates become more attractive, more buyers may enter the market, driving up competition—especially in areas with a limited supply of housing. If demand rises significantly, house prices could begin to climb again after a period of relative stagnation. This would be good news for homeowners looking to sell but could create fresh affordability challenges for first-time buyers.

For those with existing mortgages, particularly those due to remortgage, lower interest rates offer a glimmer of hope after a challenging period of rising costs. However, fixed-rate mortgage deals are still being priced cautiously by lenders, meaning homeowners may not immediately see significant reductions in repayments. Borrowers should keep a close eye on the market to secure the best possible deals in the months ahead.

Investors in the buy-to-let sector will also be watching closely. With borrowing costs falling, landlords may feel more confident about expanding their portfolios, especially in high-demand rental areas. However, ongoing regulatory changes, tax implications, and concerns about rent controls could still pose challenges. The property market’s recovery will depend not just on interest rates but also on broader economic conditions, wage growth, and government policy.

Ultimately, while the Bank of England’s rate cut is a positive sign for homeowners and buyers, the full impact on the housing market will take time to unfold. Much will depend on whether this marks the start of a sustained downward trend in interest rates or a one-off adjustment. Either way, the property market looks set for an interesting year ahead.

Need advice?

Whether you’re looking to sell, buy or get a mortgage, Benwell Daykin can help. We’re one of the leading estate agencies in Nottingham.

Call us on 0115 990 2007.

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Housing Marketing 2025 Update

Strong start for property market in 2025 according to Rightmove

The UK property market has seen an unprecedented surge in new sellers since Boxing Day, with average prices climbing by 1.7% to £366,189, according to Rightmove’s latest report. This marks the sharpest January price increase since 2020, reflecting strong momentum heading into 2025. While seasonal price rises are common, this year’s growth is notably pronounced.

The market currently feels like buyers have more confidence. Some are willing to bid higher on properties than they were doing last year, which could be due to the slight fall in mortgage rates and increased buyer activity. This heightened competition among buyers is driving up property prices, as bidding wars become more frequent and offers steadily grow.

Factors Driving Market Growth

There is also more positive news on the horizon. Inflation fell in November 2024, and as a result, mortgage rates could drop further in 2025. Lower borrowing costs may encourage even more buyers to enter the market, further fuelling demand.

Boxing Day has traditionally been the busiest day for visits to Rightmove’s website, and 2024 was no exception. The number of potential buyers sending inquiries to estate agents through the platform rose by 9% compared to the same time in 2023. This surge highlights the ongoing appetite for property at the start of the year.

Looking further into 2025, Rightmove anticipates an average 4% increase in asking prices across the board. To put this into perspective, a property valued at £250,000 today could be worth £260,000 by the end of the year, while a £500,000 home might rise to £520,000. These increases underline the strength of the market as it heads into a potentially robust year.

Advice for Sellers in 2025

However, it’s worth noting that some uncertainty could lie ahead. Changes to stamp duty, due to come into effect on April 1, may temper the market later in the year. Buyers and sellers alike should be mindful of this potential shift.

For sellers considering entering the market, now is an opportune time. The busy start to 2025 offers the perfect chance to attract motivated buyers. To make the most of this momentum, you can arrange a free, no-obligation property valuation by calling 0115 9902007 or contacting us through our website.

Ultimately, while there is optimism in the market, it’s important to act quickly to avoid potential slowdowns later in the year. Taking advantage of the early surge could help sellers achieve their desired price before any headwinds appear.

Get your free property valuation

Talk to Benwell Daykin today on 0115 990 2007 or contact us here.

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Bank of England Cuts Interest Rates Once More

For the second time this year, The Bank of England has cut interest rates. The base rate now stands at 4.75% which is the lowest point seen in 2024.

The yearly high stood at 5.25% which was then cut in August to 5%.

What does the mean for home owners?

If you have a property on a tracker mortgage then your payments are likely to change soon. Generally, when the interest rate is cut, monthly mortgage payments become cheaper. There are approximately 600,000 people in the UK who are on a tracker deal who may benefit from this.

First time buyers are also likely to benefit as mortgage repayments may become more affordable than they have been throughout the year.

Those who are on fixed mortgage deals and are coming to the end of theirs will see changes too. But monthly repayments are unlikely to drop to levels which have previously been seen over the last few years.

As an example, if you are coming to the end of a 5 year fixed deal, you are likely to be on a deal of around 2%. The current reported lowest deal is around 3.7% so you will still be paying more than you would have been previously.

If you’re looking to change mortgage deals then now is likely the right time. However, Benwell Daykin estate agents would suggest waiting a couple of weeks to let the dust settle. Many banks or lenders won’t be changing their rates immediately following this news.

Need mortgage advice? Get in touch with our recommended mortgage broker.

If you’re looking to move home since this news then we also offer free property valuations.