Property experts say that many people have put their moving plans on hold until interest rates drop*.
Is this the right or wrong thing to do?
Let’s take a look.
First, some context
In its battle to beat inflation, the Bank of England (BoE) has held rates at 5.25% since August last year.
While some predict the BoE may cut rates when it meets in August, the change, if any, is expected to be small.
So, yes, we could see a rate cut this year, but it will be modest.
The BoE won’t want to cut rates too quickly in case inflation surges like it did last year.
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.
Other issues to consider
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.
So, is it wiser to wait or more astute to act? Ultimately, only you can decide what’s right for you.
But when you feel it’s time for a change, we’re here to help.
For more insights about the local property market, contact us here at Storeys today.
* Source: Knight Frank
Telephone | 01606 339922 | 01829 700359 | 01925 595950
Email | [email protected]
Website | www.storeysofcheshire.co.uk
Explore more here:
About the Author: Aidan Flanagan | Operations Manager
Read More Articles
New Term, New Routine, New Home. Why September is the Month to Make your Move
There comes a point toward the closing stages of the summer holidays when the sadness of summer ending is finally outweighed by the promise of fresh starts, order, and the reestablishment of familiar routines when you relent to 
The Christmas Countdown Begins Around the BBQ
Unless you're from Australia, it's unlikely that where you'll be spending Christmas Day willcross your mind while you’re in the garden at 7pm checking on the smoker and topping up everyone's drinks on a warm August evening. The sun is shining, the steaks
Selling in Summer: Seven simple ways to keep your home viewing-ready
Summer is the selling season when it comes to homes. It’s textbook knowledge. From the hedgerows humming with birdsong, York stone patios glowing honey-gold in the sunshine, to the sweet scent of roses scrambling over walls and pergolas in the extended BST
New Term, New Routine, New Home. Why September is the Month to Make your Move
There comes a point toward the closing stages of the summer holidays when the sadness of summer ending is finally outweighed by the promise of fresh starts, order, and the reestablishment of familiar routines when you relent to
The Christmas Countdown Begins Around the BBQ
Unless you're from Australia, it's unlikely that where you'll be spending Christmas Day willcross your mind while you’re in the garden at 7pm checking on the smoker and topping up everyone's drinks on a warm August evening. The sun is shining, the steaks
