With the Bank of England opting to hold the base rate, the news may not be what some were hoping for. But confidence is quietly rebuilding.
As Rob Clifford, Chief Executive, explains, borrowers are adjusting to the new normal, and we’re edging back towards a “sweet spot” where rates stop holding activity back.
With cuts still expected later this year, advisers who prepare now could be well placed for a meaningful uplift in demand across the market.
Rob Clifford, Chief Executive of mortgage and protection network Stonebridge, said:
“The market has been on tenterhooks waiting to see if the Bank would deliver consecutive cuts but it wasn’t to be. Inflation rose for the first time in five months in December and that seems to have been just enough for the rate setters to press pause despite a weakening jobs market.
“Confidence is still clearly returning, however, after a glut of unnecessary uncertainty around the autumn Budget, but the property market isn’t getting the big bang that might have been anticipated.
“Borrowers understand that rates are only going in one direction for now. Ultimately that can cause people to delay under certain circumstances, but the lower rates go, the less that will really make a difference. We’re gradually returning to the rate sweet spot where borrowing costs no longer represent a hump that causes consumers to hold out for better times.
“When the next couple of rate cuts do arrive, and they’re certainly expected this year, these will spur significantly more activity and that’s going to be great news, not just for brokers but agents, housebuilders and lenders as well. Advisers should be prepared for that, and it may be that some now start to increase investment in their lead generation and pipeline in anticipation.”
