Housing sector worth slows regardless of cuts to base charge
The rise in the value of the housing sector has slowed sharply as rate cuts have failed to kick-start the market.
Analysis from estate agency Savills showed that the total value of the housing stock hit a peak of £9.18 trillion last year. But the increase of £136billion was well down on the £268billion recorded the year before. Values had fallen in 2023.
Despite hopes that falling mortgage rates could boost the sector, Savills said that the £336billion growth in value over the last three years is the lowest since 2013.
Slowdown: Despite hopes that falling mortgage rates could boost the sector, Savills said that the £336billion growth in value over the last three years is the lowest since 2013
Lucian Cook, at Savills, said the market ‘has been slow to respond to recent cuts in Bank Rate’.
The Bank of England earlier this month held Bank Rate at 3.75 per cent after cutting it six times since August 2024.
Plunging levels of housebuilding also ‘kept a lid on the aggregate number,’ Cook said.
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