Category: News

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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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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.

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UK Property Prices in Autumn 2024

It’s been a turbulent year for the property industry, with high interest rates and house prices fluctuating heavily. But now things could be changing. We take a look at house prices and the property market in autumn 2024.

House prices in autumn 2024

News released last week by Halifax suggest that property prices are on the rise once again.

Prices hit a two year high last month in August which shows the economy is now recovering after a dip earlier in the year.

The report suggests that prices increased 0.3 per cent last month and also rose 0.9 per cent in July.

This puts the average cost of a property in the UK at £292,505 and is the highest level since August 2022.

Looking at an annual basis, house prices were also up 4.3 per cent in August.

Why are house prices rising?

House prices tend to rise with demand. With the lowering of interest rates, confidence is now growing in the market once again.

August saw the Bank of England’s base rate drop from 5.25 per cent to 5 per cent. After this, most mortgage lenders lowered the rates on some of their products.

This in turn allowed better affordability for some, and encouraged others to look into purchasing a new home too.

Rising house prices is good news for home owners but not so good for those looking to take a step onto the housing ladder for the first time.

Affordability is still a problem for first time buyers, with many having to wait until their 30s to buy a home, or use the Bank of Mum and Dad.

London house prices in autumn 2024

London still remains as the most expensive place to buy a property in the UK.

The average property price in the capital is now £536,056, which is an increase of 1.5 per cent since last August.

London was hit hard by falling house prices earlier this year and last year but there now seems to be some recovery. Zoopla reports.

London is now 0.2 per cent positive growth at the end of the summer.

Nottingham house prices

Looking at house prices in Nottingham, growth is at 0.4 per cent year on year.

Nottingham has actually had a very good time for growth and there has been a small, steady increase in prices over 2024. Many other cities haven’t seen this sort of growth.

Interestingly, the East Midlands, on average, is down 0.1% year on year.

The average house price in Nottingham is now £203,100, according to Hometrack.

Our outlook for the housing market

We would expect the housing market to continue to grow over the next few months and into 2025.

Winter is traditionally a quiet month with not much growth, however we would expect a further interest rate cut later this year, if not early next, into the spring.

This is likely to boost prices further and confidence should again grow in the market overall.

How much is your house worth?

How much has your property grown in value since you purchased it? Talk to Benwell Daykin estate agents Nottingham for a free, no obligation property valuation.

You can also contact us to discuss the market in more detail.

uk property autumn 2024

 

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Will the general election affect house prices?

The general election is here and Thursday will see us all go to the polls to decide on who will be leading the country.

Although housing is not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon to be first time buyers, are watching very closely.

But has the general election impacted houses so far and will it cause any significant changes once the election has taken place?

Has the general election affected house prices so far?

Several years ago, house prices were increasing rapidly which was great news for current owners but not so much for those looking to step onto the housing ladder.

In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. And in the last 4 weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.

But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so.

There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.

Will the election alter house prices after July 4th?

What about after the election?

If the polls are correct, it looks like we’re soon to have a new government in place and yes, this could put some energy into the market.

Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.

Nationwide have too done some research and they have concluded that after the past general elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.

Nationwide also extended their research to mortgage approvals and again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.

Having said this, other research conducted by Compare my Move did conclude that house prices roses by an average of 4.6 per cent following a general election.

What can we conclude?

By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices when it comes to the election.

There may be small changes but on the whole, we’re not going to see a huge amount of volatility.

Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.

What do you think yourself? Let us know your thoughts.

Find out how much your property is worth

If you’re looking for an up to date valuation of your property, contact Benwell Daykin today.

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Nottingham Property Prices Sumer 2024

UK house prices are growing again throughout the country.

The latest data for May, released at the beginning of June, suggest prices rose 0.4 per cent in the last 4 weeks. This data comes straight from Nationwide.

House prices have remained fairly static throughout Spring 2024, however a small rise in wages and a dip in inflation has meant prices are on an upward trend once more.

The average UK house price now stands at £264,249, compared to £261,962 in April.

Nottingham house prices in Summer 2024

When looking at Nottingham specifically, the average house price is now over £200,000. According to Hometrack, the official figure is £201,200.

This is a 4.9 per cent growth year on year and means that Nottingham house prices have had the biggest gains across the whole country in the 12 months leading to April 2024.

Benwell Daykin expects this rise to continue throughout the summer.

When focusing across Nottinghamshire, to include Ruddington where we are based, the average house price is higher at £238,322 according to Rightmove.

Looking at the data solely for Ruddington, this average price increased further to £333,957.

Mortgage rates for Summer 2024

According to Moneyfacts, the average mortgage rate for a 2 year fixed deal is current 5.29 per cent. This is up slightly on April 2024 which was 5.83 per cent.

The average rate on a 5 year fixed deal is now 5.49 per cent.

This rise is likely due to the Bank of England’s decision to keep the base rate at 5.25 per cent during their last meeting.

The general election and property prices

Many people are asking Benwell Dayking if there will be significant house price movements as a result of the general election.

Data has also been analysed from previous general election periods and it is safe to say that generally house prices are not affected.

How much is your property worth in Summer 2024?

The only way to find out accurately how much your property is worth is by asking an experienced agent, like us, to conduct a valuation.

Our valuations are free of charge with no obligation to use our services.

Simply call Benwell Daykin, estate agents in Nottingham, on 0115 990 2007 or use our house valuation form to get in touch.

 

 

 

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The surprising property type with rapid house price growth

It’s likely you will have heard reports that house prices have dropped over the last few months.

Although this is true in some areas, prices are beginning to rise once more according to Halifax. This is of course good news for home owners looking to sell or those looking to release some equity.

But there’s one particular property type with prices rising faster than anything else – flats.

With borrowing costs higher than they have been for a number of years, buyers are struggling to find affordable properties. This means they are now turning to smaller properties in an attempt to keep their monthly repayments down.

First time buyers in particular are looking for more affordable options and so they are turning to flats to purchase for their first home. The increase in demand is now driving prices upwards faster than most other property types.

Property prices will continue to rise throughout 2024

Benwell Daykin predicts that prices of other property types will soon rise as quickly.

There is now much higher confidence in the market with the highest number of mortgage approvals than any time in the last 18 months. Affordability, however, is still very much a problem for some and this could last for a while longer. It is expected that the Bank of England will keep interest rates at 5.25 per cent when they next meet on Thursday 9th May.

Benwell Daykin expects this to begin to drop by the end of the year, if not sooner.

So, there may still be some challenges in the market. However, if you’ve been putting off placing your home on the market, it now looks like activity is beginning to bubble once more.

Is it time you found out how much your house is worth in the current climate? The average Ruddington property price is now well over £300,000.

Talk to Benwell Daykin today on 0115 990 2007 to receive personalised property advice.

 

 

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Easter Colouring Competition 2024

Click here for the 2025 Easter Colouring Competition.

Benwell Daykin’s annual colouring competition is back!

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 2024 Easter designs here.

Please return entries to the office on High Street in Ruddington by 29th March 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!

Children’s Competition Download

Adult Competition Download