Property experts say that many people have put their moving plans on hold until interest rates drop*.
Â
Is this the right or wrong thing to do?
Â
Let’s take a look**.
Â
First, some context
Â
In its battle to beat inflation, the Bank of England (BoE) has held rates at 5.25% since August last year.
Â
While some predict the BoE may cut rates when it meets in August, the change, if any, is expected to be small.
Â
So, yes, we could see a rate cut this year, but it will be modest.
Â
The BoE won’t want to cut rates too quickly in case inflation surges like it did last year.
Â
Conclusion: While rates may drop a little bit, if you’re holding out for the ultra-low deals we saw a few years ago, you could be waiting a long time.
Â
Other issues to consider
Â
Here are some other issues to weigh up when deciding on your next move.
- Currently, properties on the market are competitively priced. There are some very good deals to be had.
- If many buyers enter the market at the same time later in the year, there will be more demand and increased competition between buyers.
- When interest rates drop, and people can borrow more, property prices tend to rise.
- Delaying a move can have a financial cost. If your aim is to move closer to work or family, you’ll spend more on commuting or childcare in the interim.
- Property transactions can take longer than you expect to complete. If it’s your ambition to live in the catchment of an outstanding school, it’s good to have certainty.
- There’s an emotional cost to putting your life on hold. It’s one thing to delay a move for a few months, but if you’re keen to downsize or upsize, waiting means you’re left in limbo.
Â
So, is it wiser to wait or more astute to act? Ultimately, only you can decide what’s right for you.
Â
But when you feel it’s time for a change, we’re here to help.
Â
For more insights about the local property market, contact us here at CWB Property today.
Â
* Source: Knight Frank
** This article is an assessment based on the data and research available at the time of writing.
Comments