An interest rate cuts in the next few months are unlikely, but the new year housing market will start with “a bang”, according to LRG’s sales chief.

Kevin Shaw, National Sales MD at Leaders Romans Group (main picture), says last week’s rise in inflation to 2.3% means the Bank of England will probably not cut the base interest rate next month.

The Bank is due to make an announcement on 19 December and again in February, but Shaw believes there will not be a rate reduction until March.

Interest rate

“This would be good timing for the spring housing market,” he says.

He goes onto to say the base interest rate will not go as low as 3.75% by the end of 2025, as some experts had predicted. The current rate is 4.75% after a 0.25% cut earlier this month.

If the rate does drop to 4.25% though, it would mean mortgages available at 3.5% which would bring more buyers to the market, he says.

The number of first-time buyers registering across our network has risen by 12% month on month.”

“Interestingly, in the last three weeks since the budget at the end of October, the number of first-time buyers registering across our network has risen by 12% month on month. Many of these are undoubtedly trying to move before the change in Stamp Duty at the end of March,” he says.

Stamp Duty relief for first-time buyers for homes worth more than £425,000, is set to drop to £300,000 in March.

Our data at LRG indicates that January starts off with a bang.”

There is plenty of cause for optimism Shaw says: “Our data at LRG indicates that January starts off with a bang, with applicant numbers increasing from the beginning of the month, and we are anticipating the same next year.

“We are forecasting house price growth of around 3% to 4% in 2025, with more scope in the Midlands and North due to affordability factors further south.”

Kevin Shaw will be speaking at The Negotiator Conference this Friday. Tickets are still available.

‘Keeping it local’ has been key to our success, says LRG senior