AN interest rate cut could reinvigorate the UK housing market, the boss of a Lichfield legal firm has said.
The Bank of England has reduced rates from 5.25% to 5% – the first time they have fallen since the start of the pandemic in March 2020.
Gary Davison, managing director of Davisons Law, said the move had the potential to unleash demand among buyers and sellers as confidence returns to the market.
“It’s evident the market has been hoping for, and anticipating, a reduction in the interest rate for some time.
“This will undoubtedly be a spur to the built-up demand amongst buyers and sellers who have been waiting for a green light in terms of cheaper mortgage availability.
“We are expecting to see significant growth in transaction numbers as a result of the cut.”
The Bank of England’s rate-setting committee voted by a majority of five to four to implement the reduction in interest rates – but governor Andrew Bailey said that the announcement was unlikely to lead to a flurry of cuts over the coming months.
