Get On With It! - agents say Bank should cut rates now

Propertymark is telling the Bank of England that now is the perfect time to cut base rate and trigger wider interest rate falls.

The headline inflation rate is now just 3.4%, the lowest for two years; and today at noon the Bank of England’s monetary policy committee announces its decision on base rate.

Nathan Emerson, chief executive of Propertymark, says: “This is an ideal time for the Bank of England to start considering a cut in interest rates when they meet this month. Andrew Bailey, the Governor of the Bank of England, said recently that inflation does not have to fall to 2 per cent before the central bank starts considering cutting interest rates. 

“Propertymark’s own Housing Insight Report shows that there has been an average 120 per cent increase in the number of potential buyers registered per member branch and this is potentially an ideal time to revitalise the housing market.”  

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Lower inflation and the prospect of further falls has certainly fuelled housing market activity, if not prices so far this year.

“These figures are particularly interesting as they cover not only mortgaged but cash sales which alone account for over a third of the total, despite them being a little dated. However, the increase in listings and back-of-the-mind worries about the economy has meant the market remains sensitive and only competitively-priced stock is attracting attention.”

And Tom Bill, head of UK residential research at Knight Frank, adds: “The UK housing market recovery has been slow and inconsistent as inflation and jobs data send mixed signals. Stubborn core inflation is the Bank of England’s biggest headache, which means rate cut expectations have moved further into the distance, mortgage costs have crept up and downwards pressure on prices has increased. 

“A rate cut this month or in May would boost buyer sentiment but summer appears a more realistic prospect than spring based on current evidence.”

Tim Bannister, Rightmove’s property expert, adds: “The general feeling is one of positivity at the moment after a good start to the year for the housing market, albeit with most of the year still to go and some twists and turns likely still ahead. We’re seeing many buyers and sellers get on with moves after some held back last year, and in the short term, given we don’t expect any dramatic changes in mortgage rates, it looks like the trend to ‘get on with moving’ will continue.”