The UK Property Market Springs to Life as Mortgage Rates Ease

A wave of optimism is sweeping through the UK property market as falling mortgage rates encourage more homeowners to take the plunge and list their properties for sale. With a fresh injection of confidence, both buyers and sellers are seizing the opportunity to make their next move.

The Bank of England has lowered the base interest rate from 4.75% to 4.5%, marking its lowest level since mid-2023. While further reductions are expected this year, policymakers remain cautious about the broader economic outlook.

Market experts are now forecasting up to three additional rate cuts in 2025, a more promising scenario than the previous expectation of just two reductions. This renewed optimism follows a split decision within the Monetary Policy Committee (MPC), where two members pushed for a bolder 50 basis point cut. Though a 25 basis point reduction was ultimately chosen, concerns over sluggish economic growth could prompt further adjustments in the near future.

For estate agents in Nottingham, these developments signal a potential turning point. Lower borrowing costs are making homeownership more accessible, enticing buyers back into the market and prompting more sellers to make a move.

Rightmove’s latest house price index reflects this growing confidence, revealing a 1.8% annual rise in asking prices in January, alongside a 1.7% increase compared to the previous month. This marks the most significant January price growth since 2020, a clear indicator of strengthening demand.

Since Boxing Day, a record number of sellers have stepped forward, with new property listings surging by 11% year-on-year. At the same time, the number of buyers actively engaging with estate agents has jumped by 9%, creating a dynamic and fast-moving market.

With mortgage rates dipping and buyer interest on the rise, there has never been a better time to make your move. Sellers can capitalise on heightened demand, while buyers have more choice as fresh listings continue to flood the market.

At Comfort Estates, we are here to guide you through every step of your property journey. Whether you’re selling your home or searching for your dream property, our dedicated team is ready to assist. Get in touch today and take advantage of the exciting opportunities unfolding in the Nottingham property market. Get an instant online valuation today or book a free in-person valuation.