View to a thrill

davislund — Mon, 12 Feb 2024 14:33:27 +0000

Everybody lives differently. Of course they do. But when viewing properties, seeing past how someone else lives can be vital in terms of establishing whether the property is the one for you. It’s all too easy to get sidetracked by the ‘stuff’ rather than the ‘space’ that a property offers.

Concentrate on the structure of a property. How does it flow? Is it easy to move from one room to another, or does it feel like you’re having to navigate carefully? If a room feels too big, could a simple piece of furniture, or even a change of colour scheme, break things up a bit and make the place more cosy? And if it’s not big enough, is it the room itself that’s a bit on the small side or is it just cluttered, or painted in dark colours? It’s amazing how a fresh lick of paint can transform the feel of a room.

Bathrooms and kitchens can present the biggest challenge, as things like kitchen units or bathroom suites can seem like immovable objects. But sometimes losing a cupboard can free up so much space (and do you really need that many cupboards anyway?). And if there’s only a shower but you wanted a bath, could a smaller tub be fitted where the shower is now, with a new shower being fitted over? The point is everything’s changeable. All this sounds like simple stuff but it’s amazing how many times a property is perceived differently to its potential because of how it has been used, rather than how it will be used.

Most importantly, how does the house feel? Emotional connections to properties are easy to ignore but are perhaps the best way of determining whether this is a place you could happily live in. Maybe there’s a bit of work that needs doing but you’ve told yourself you didn’t want a project. And yet, the house itself is giving you good vibes. Don’t question them, embrace them! Because sometimes, our ideal home can be found in the unlikeliest of places…

Bank holds rate at 5.25% in split vote

davislund — Thu, 01 Feb 2024 12:23:45 +0000

The Bank of England has held the base interest rate at 5.25% for the fourth time running.

David Callaghan

1st February 2024

The Bank of England held its base interest rate at 5.25% for the fourth time in a row today, but its Monetary Policy Committee was divided on the decision.

It means the rate remains at a 15-year high for the first part of the new year, as the Bank moves cautiously in its battle with inflation.

SPLIT DECISION

The Bank’s Monetary Policy Committee voted by a majority of 6–3 to maintain the rate at 5.25%. Two members preferred to increase the rate by 0.25%, to 5.5%. One member voted to reduce the rate by 0.25%, to 5%.

Andrew Bailey, the Governor of the Bank of England (main picture), and Huw Pill, Chief Economist, are both believed to favour a hold in the rate.

DOWNWARDS

Today’s decision was widely expcted even though there was a surprise increase in inflation during December to 4% from 3.9%.

Most City analysts believe the inflation trend is firmly downwards, with some even saying the Government will reach its target of 2% by April.

INDUSTRY REACTION

Dominic Agace, CEO at Winkworth, says: “It’s sensible to hold the rate, as while all the indicators point to a return to inflation target by April and rate cuts, it’s important to not get carried away.

“Inflation remains high and to ensure there are no unpleasant surprises, it’s vital that we pursue a steady and predictable path,” he says.

“The property market hates uncertainty and surprises, which was demonstrated by the fall-out as a result of the Liz Truss Budget. A steady approach reducing rates makes for the best approach for a property market that people can predict and so trade in.”

Jonathan Samuels, CEO of Octane Capital, says: “It appears that the Bank of England’s slow but steady approach to managing the economy has finally started to pay off, with inflation falling sharply this week.

“Generally speaking, today’s decision to keep the base rate held should bring further positivity for the economy and the property market, in particular.

“But while it’s likely to stoke the fires with respect to the increasing number of buyers returning to the market in recent weeks, they are best advised to proceed with caution,” he says.

“Swap rates have been gradually climbing so far this year in anticipation of today’s decision and so an ongoing degree of certainty where the base rate is concerned doesn’t necessarily mean lower mortgage rates are guaranteed.”

Guy Gittins, CEO at Foxtons, says: “A freeze on interest rates since September of last year resulted in 2023 finishing with a far higher degree of mortgage market positivity than many had forecast and it’s now clear that this positivity has carried over into 2024.

“We’ve already seen a promising start to the year compared to January last year, as buyers have returned to the market.

However, the potential now is that mortgage rates could start to climb following a fourth consecutive decision to keep the base rate frozen at 5.25% and we’ve already seen evidence of lenders increasing swap rates in recent weeks in anticipation of today’s news,” he says.

“This will further add to the air of urgency shown by buyers of late, who have been encouraged by sub 4% mortgage opportunities and have been keen to secure them while they are available.”

Verona Frankish, CEO of Yopa, says: “Today’s decision won’t necessarily add to the property market positivity seen so far this year, but it certainly won’t diminish it either.

“Whilst the cost of borrowing remains higher than the nation’s borrowers have become used to, they should be reassured that we’ve likely seen the peak where interest rates are concerned and that any future movement will be downwards.