How will the latest 0.25% Bank Rate rise impact the UK property market?

The Bank of England has increased the Bank Rate to 4.5%.

The Bank Rate influences all other interest rates in the UK. Inflation is currently at high and the Bank of England needs to try to meet an inflation target of 2% set by the government.

Therefore, they will increase the Bank Rate when they want to soften demand, encouraging people to save money. This should slow the price inflation.

rising inflation in UK

Will this affect the mortgage rate?

The consecutive rises in the rates since 2021 had a knock-on effect of mortgage rates to rise quickly to over 6% at the end of 2022, but since then they have fallen to the 4-5% range with little change. This is because Lenders have already priced in the further anticipated rate rises which means we expect mortgage rates to remain within this range over the rest of the year.

mortgage services one uk properties

Also, with the cost-of-living rises and therefore fewer buyers in the market, lenders need to keep their rates competitive to attract new clients.

If you already have a mortgage on fixed rates, you will feel no immediate impact from a change in the Bank Rate.

Are house prices expected to drop further?

Predictions for house prices had also already priced in rate hikes so there is little change predicted with the new Bank Rate rise.

The initial news on inflation and rising interest rates last year already had a softening effect on the market and the market is predicted to remain steady by the end of 2023.

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If suddenly the economy collapsed at a high rate and unemployment increased, then prices would fall.

If you are thinking of buying, the attractive lower prices and the settled Mortgage rates should give you the incentive to go ahead.

As long as it’s the right property for you and you’ve considered your options, trying to predict property market trend timings is a big challenge and often an opportunity lost.

Will property prices rise faster inside or out of London?

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Prices outside of London will increase at a faster rate than in London in the coming year because places like Birmingham and Manchester are holding up best. There is stronger demand from buyers in these areas along with a lot of regeneration going on in the cities, which gives rise to stronger property price growth.

Please contact us for a discussion on the market trends and where to invest in this climate.

Area Guide for Wood Green and Finsbury Park.

Wood Green and Finsbury Park

Wood Green and Finsbury Park are vibrant areas in the north of London, both located in the borough of Haringey. Each area has its own unique character and charm, with a range of attractions and amenities that make them popular destinations for locals and visitors alike.


 wood green park

Wood Green, London is a bustling commercial center, known for its shopping and entertainment options. The area is home to the popular shopping mall, The Mall Wood Green, which houses a range of high-street retailers and restaurants. Additionally, the area has a lively street market, Wood Green Market, which sells everything from fresh produce to household items. For entertainment, the area has the Alexandra Palace, a historic venue that hosts concerts, exhibitions, and sporting events. Another attraction is the Vue cinema, where visitors can catch the latest blockbusters.

Finsbury Park High Street

Finsbury Park, London on the other hand, has a more relaxed atmosphere and is known for its green spaces. The area is centered around Finsbury Park, a large public park that offers a range of recreational activities, including a boating lake, tennis courts, and a skatepark. The park also hosts events throughout the year, including music festivals and outdoor cinema screenings. In addition to the park, the area has a vibrant food scene, with a range of cafes, restaurants, and pubs that offer a variety of cuisines.

Culture and History

For those interested in culture and history, both areas have a range of attractions to explore. Wood Green has the Museum of Brands, Packaging, and Advertising, which showcases the evolution of consumer culture from the Victorian era to the present day. Finsbury Park has the Park Theatre, a popular venue for independent theatre productions, as well as the Islington Museum, which tells the story of the borough’s rich history.


wood green station

Transportation in both areas is excellent, with several tube and train stations connecting them to the rest of London. Wood Green is served by the Piccadilly line, which provides direct access to central London and Heathrow Airport. Finsbury Park is a major transport hub, with access to the Victoria and Piccadilly lines, as well as several overground train services.

Why Buy Property in Wood Green and Finsbury Park?

The property market in Wood Green and Finsbury Park is diverse, with a range of options available for buyers and renters. Prices in both areas have seen excellent growth over the past few years, with demand driven by their convenient location just a few minutes to the financial district and City of London and access to transportation.

wood green street

Both areas have seen significant regeneration in recent years, with new developments offering a range of amenities and facilities such as gyms, communal spaces and concierge services. Furthermore, the growing demand for housing in these areas means that new properties can provide a solid investment opportunity for buyers.

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