The eagerly awaited Consumer Price Index (CPI) figures have been released, showing that the inflation rate fell to 2.3% in April. As is well known, this figure is the most important data for the Central Bank’s decision on a rate cut policy in their upcoming meeting. This indicates a strong signal for the reduction of mortgage interest rates. According to the National Office of Statistics, this figure represents a significant drop compared to the 3.2% inflation rate recorded in March.
Upon closer examination, it is evident that recent decreases in fuel and energy prices are among the main reasons for the drop in the inflation rate. Statistics show that energy prices fell by 27.1% in April.
Homeowners with mortgages and those looking for property are eagerly anticipating how these figures will make interest rates more favorable in the coming months.
Emily Williams, Research Director at the renowned international real estate firm Savills, stated that today’s announcement will reflect positively on the market, leading to increased confidence and vitality in the real estate sector. As a result, they have updated their forecasts and now expect an overall 2.5% increase in property prices for the third quarter of 2024.
As is well known, the London real estate market typically sees value increases above general levels due to high demand and limited property availability compared to other regions in the UK. At Lex Home, we recommend all our clients planning to buy property to act before prices naturally rise due to the expected decrease in interest rates. Most of our current projects for sale are set to be completed in the second and third quarters of 2025, and given that 90% of the payment is made upon key handover according to the payment package conditions, reservations made now with a 10% payment will benefit positively from any value increases by the time of key handover.
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