Search
Close this search box.

The Bank of England maintains interest rates at 5.25%

June 21, 2024

Share to: 

Key Highlights

UK

The decision has been made to keep interest rates at their current figure, as the UK economy stabilises. The figure remains at 5.25%.

The Bank of England (BoE) announced this week that it will continue to maintain interest rates at 5.25%, despite inflation falling to its target of 2%. The Bank referred to it as a “finely balanced” decision. The main reason was to ensure that inflation remained at a low figure, holding the interest rates at 5.25% until the situation becomes more stable.

This was an outcome heavily predicted by major economists, and opinion is divided on how beneficial this continued freeze will be, leaving interest rates at the highest they’ve been in 16 years.

It is expected that rates will be cut in August, offering some reprieve for the housing market just around the corner.

The news of interest rates remaining the same has understandably been frustrating for the housing market, as more and more people have held off with buying and getting on the property ladder. It means that mortgage rates continue to be high and can even impact rental yields.

It’s not all doom and gloom, however. Though there is less of a buying demand, rental demand has stayed steady as people continue to rent their homes as they wait for interest rates to lower. This has offered stability and guaranteed income for landlords during a time of economic uncertainty. 

 

Summary

North Property Group is an investment property and lettings agency, specialising in UK new build and buy-to-let properties. We locate and broker premium deals with property development agencies across the UK to deliver to property investors.

In addition to finding premium buy-to-let property investment deals, we also offer a comprehensive, end-to-end lettings management service, taking care of the property’s tenancies and lifecycle. Book a free consultation with us to start your investment journey.

Share to: 

Explore our property in Manchester

The Bailey

From £249,950

Yield: 13.5%
   In Construction
   Est. Q4 2024
   Lease Length: 250 Years

Related Articles

UK Property Market Predictions for 2025: What Buyers, Sellers, and Investors Can Expect

In 2024, the property market outperformed all expectations. House prices surged, rental figures hit new records, and buyer demand showed no signs of slowing down. ...
Read More →

How New Build Properties are Meeting Tenant Demand

As the rental market continues to evolve, new build properties are increasingly stepping up to meet the needs and expectations of modern tenants.
Read More →

Making Your Investment Goals for 2025: A Step-by-Step Guide

As the new year approaches, it is the perfect time to reflect and build your investment goals for the next year.
Read More →

2024: A Year in Review

With a mix of government initiatives, economic shifts, and regional growth, this year offered plenty of opportunities for those looking in the right places. Let’s ...
Read More →

Why Manchester is a Hub for Young Professionals

Over the past decade, Manchester has transformed into one of the UK’s most exciting cities for young professionals. From its booming job market to its ...
Read More →

A Preview of 2025’s Rental Market

What’s ahead for the 2025 rental market in Northern England? Rising rental prices and energy regulations, learn how savvy investors are adapting to new challenges ...
Read More →

Come talk to our professionals to learn more about the UK property market now!

Learn more about investing in Manchester by downloading our guide today