Thu 21 Dec 2023
The latest Office for National Statistics data shows inflation was pushed down from 4.6% to 3.9% last month due to falling petrol and food costs.
It was a larger than expected drop and may be good news for the property market if it fees into interest rate cuts and cheaper mortgages to boost buyer demand.
Karen Noye, mortgage expert at wealth manager Quilter, said: “The positive inflation figures this morning might potentially mean that the Bank of England is minded to reduce interest rates faster than originally predicted.
"This will help reduce mortgage rates and coax more people into the market and prices will resume their upward trajectory whether for good or for worse.
“We should be under no illusion though, things will still be difficult for borrowers in 2024 and anyone hoping for a return to ultra-low mortgage rates is likely to be disappointed.”
Nathan Emerson, chief executive of agency trade body Propertymark, said: “We are optimistic this may lead to a potential dip in interest rates in early 2024.
“This will help restore stronger confidence to the housing market and make the prospect of buying and selling a house more attractive to consumers.”