Last week’s Monetary Policy Committee decision to cut the interest rate to 0.25% has implications across the economic spectrum. While the cut is not the news that savers were hoping for, the property market may well benefit from this post-brexit boost. Implemented as an economic stimulus, it’s been described as something of a sticking plaster, but what are the implications for Northern Ireland’s property market.
The reduced rate means historically low mortgage rates, together with a large degree of choice for potential purchasers, and excellent affordability entering the last quarter of 2016 could combine to stimulate a perfect buyers’ market.
William Liddell, Area Director for Templeton Robinson’s Lisburn Road office, says increased viewing and offer activity is being reported in all five of the agency’s branches.
“There has been a surge in inquiry levels following the usual lull of the July holidays, with growing awareness that market conditions are favourable. September usually marks the start of one of busiest periods, and as we progress into Autumn there is a trend for buyers bidding to beat the Christmas deadline gathers pace. This upsurge in activity, coupled with the cut in interest rates should drive renewed momentum within the local market.
“Supply remains a constant challenge, but demand for quality housing in key areas across Northern Ireland is still strong. Brexit, while creating uncertain market conditions for a time, is not the overarching consideration it was in June, and we look forward to renewed vigour within the market for the final quarter.