After 14 consecutive rate rises, the Bank of England last Thursday decided to defy industry expectations, and held the base rate at 5.25%. This rather unexpected *yet welcome* move, lends further weight to the idea that the upward trajectory of this year's borrowing costs, may have finally reached its peak.
The decision comes as inflation figures proved to be better-than-expected in recent months (dropping from 6.8% in July to 6.7% in August), although the burning question now prevails, as to what extent to which these changes will help breathe some much-needed life back into the housing market.
According to those with a finger on the pulse of the industry, this will largely depend on how far mortgage rates can edge towards the 4% mark - a figure which would inevitably help restore buyer confidence and affordability - in the months and year ahead.
Reading between the lines, the general consensus is that this is not expected to happen until the second half of 2024, at which point demand should begin to improve towards the more 'normal' levels of 2019.
In the meantime, the property-buying picture does remain a relatively resilient one, especially in some of the more sought-after corners of the South East. This is evidenced, in part, by the number of sales still being agreed, and new enquiries being submitted, even as we do edge towards the traditionally more subdued autumn/winter selling season.
For more details on the Maidenhead property market, and homes available to buy or rent in this area, please contact Braxton on 01628 674234 or email property@braxtons.co.uk.