What will the interest rate freeze mean for house prices across the North East?
The Bank of England has opted to maintain its current interest rates at 5.25 percent, despite a decline in inflation. In February, inflation dipped to 3.4 percent from January's 4 percent, marking the lowest rate since September 2021 when it stood at 3.1 percent.
They anticipate inflation will return to its two percent target between by June this year, nearly 18 months earlier than previously projected.
Those in the property sector will particularly welcome the news as there have been fears of a market crash.
They anticipate inflation will return to its two percent target between by June this year, nearly 18 months earlier than previously projected.
Those in the property sector will particularly welcome the news as there have been fears of a market crash.
Transcript
00:00 The Bank of England has opted to maintain its current interest rates at 5.25%
00:09 that's despite a decline in inflation. The Bank of England anticipates inflation will return to its 2% target by June this year.
00:17 That's nearly 18 months earlier than previously projected.
00:21 Those in the property sector will particularly welcome the news as there have been fears of a market crash.
00:28 And indeed the North East has seen the most significant decrease in house prices in the UK
00:35 dropping by 1.7% this month with a total drop of 3.1% over the last year
00:41 meaning the average property in this region is now worth £155,000.
00:47 While concerns regarding the housing market will likely be steadied by the news that Prime Minister Rishi Sunak
00:54 and Chancellor Jeremy Hunt say they are encouraged by the inflation decrease
00:59 hinting at potential interest rate reductions to bolster the economic outlook ahead.