In response to the Bank of England’s decision to lower the base rate from 4.75% to 4.5%, Nick Leeming, Chairman of Jackson-Stops, comments:

“While the Bank of England’s decision may not have been a surprise, it will certainly be welcomed. With expectations that there will be a series of incremental cuts to the base rate this year, this is a vote of confidence from the Bank of England in the markets more widely.

“While some economic volatility continues to weigh on the minds of decision makers, the Government’s staunch commitment to boosting growth alongside the ECB recently cutting rates – and the Fed expected to do the same – made the Bank of England’s decision a necessity.

“For buyers and borrowers, any cut to the base rate is a positive step, however the trickle down to mortgage rates may not be so immediate. There remains lots for prospective buyers to be positive about. Inflation is much lower than a year ago and the tide has now turned on interest rates, which will ease affordability in the mid- to long-term. We are still seeing a strong level of commitment to the market and sales progressing at the end of last year with confident pricing. We expect activity levels to persist with Stamp Duty changes in March motivating quick completions.”