BANK OF ENGLAND HOLDS BASE RATE AT 3.75%
The Bank of England has held interest rates at 3.75%, as it continues to monitor inflation and the impact of global events on the UK economy. Ongoing tensions in the Middle East - particularly the conflict involving Iran - are creating uncertainty, especially around energy prices. Oil has risen above $120 a barrel, which could lead to higher gas and electricity bills later this year. At the same time, inflation has edged up to 3.3% (as of March) - which is still above the Bank’s 2% target. What does this mean for buyers and sellers? A pause in rate changes brings a level of stability to the market - which is good news for both buyers and sellers. - Buyers are still able to plan with a bit more confidence, rather than reacting to frequent rate increases - Sellers benefit from more committed buyers - even if overall demand is slightly quieter than previous years - Pricing remains steady, with less volatility than we’ve seen in the past couple of years Agents are continuing to see a market made up of serious, motivated movers, rather than speculative or 'just-looking' buyers.