The base rate cut will deliver a boost to the market with auction providing stakeholders speed to market and security of sale.
Following last week’s base rate cut by the Bank of England, interest rates are at the lowest level since March 2023, giving the UK property market a welcome boost in its fortunes.
Now standing at 4%, down from 4.25%, the base rate is expected to encourage mortgage lenders to offer more favourable deals. This will improve market accessibility, providing property buyers with greater flexibility and confidence to make purchases.
“The base rate cut will certainly be welcomed by buyers as it will give them greater financial headroom and confidence when it comes to borrowing,” commented Oliver Prior, National Commercial Director of Auction House. “However, growth within the UK economy remains slow, and sales within the private treaty market continue to be a challenge due to misaligned price expectations between vendors and the market.
“Selling by auction, on the other hand, provides a competitive bidding environment, whereby best value is determined by the market. Both vendors and buyers then benefit from a secure and quick transaction that cannot be matched by traditional methods of sale.”
A record-breaking summer
“Historically, the property market quietens down over the summer months, but not this year,” said Oliver Prior. “Instead, our weekly national online auctions in July saw an astounding growth of 39.3% year-on-year.”
Oliver Prior credits the regularity of our sale events, along with the speed and certainty of sale at auction, for these outstanding results. “Property auctions facilitate fast and secure sales. This means that buyers can move quickly, and sellers are protected by the assurance of the sale once the hammer goes down,” he explained.
The buoyancy of auction sales will be supported by the continuing high level of stock going under the hammer: “Our 18th August online auction already has 112 lots listed, for instance. With plenty to choose from and all the other advantages of auction, buyers are finding the property auction market to be a strategic option to deliver on their objectives and discover their next property investment,” concluded Oliver Prior.
Find out more about Auction House
As a national operator with local regional branches, we are well-placed to support buyers and sellers with your property and land sales.
Browse our website to view all the auction lots currently on offer or to book a free, no-obligation valuation for your property or land.
