This morning’s inflation figures caught many off guard. The headline rate dropped to 2.8%, down from 3.3% in March, defying expectations given the ongoing uncertainty around the conflict in Iran. It still sits above the Bank of England’s 2% target, but the direction of travel is encouraging.
Ben Thompson of the Mortgage Advice Bureau welcomed the news, noting that as inflation eases, mortgage rates could follow, relieving pressure on affordability. That matters more than it might sound. His research shows 41% of prospective buyers are currently waiting for a “sign” before making their move. Today’s figures could well be it.
On the mortgage rate front, there is already tangible progress. L&C’s remortgage tracker shows the average two-year remortgage fixed rate across the top ten lenders has eased back to 4.78%, its lowest level since the end of March.
That said, Propertymark’s Nathan Emerson struck a measured tone, reminding us that today’s figures still sit some way from the Bank’s target and that global uncertainty has not disappeared overnight.
At Drivers & Norris, we see this as a genuine positive but not a signal to throw caution to the wind. For buyers who have been sitting on the fence, conditions are becoming more favourable. For sellers, realistic pricing remains the most powerful tool you have.
If you would like to talk through what this means for your move, we would love to hear from you.
Source: Estate Agent Today
— Drivers & Norris