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.

7 Reasons to Buy a Property in Birmingham

Top 7 Reasons to Invest in Birmingham Property

Birmingham is the second largest city in the UK after London and is a bustling hub of commerce and culture. It has undergone significant regeneration in recent years, making it an attractive destination for property investment. Here are 7 reasons why Birmingham is a great place to invest in property:

Growing demand:

Birmingham City UK

Birmingham is experiencing a growing demand for housing, both from locals and international students, as the city is home to five universities. With limited space and high demand, the city’s property market is showing strong signs of growth.


Despite being the second largest city in the UK, Birmingham remains affordable compared to other major cities like London and Manchester. This means investors can purchase property at a relatively low cost while enjoying good rental yields.

Transport infrastructure:

City Greens Birmingham Airport

Birmingham’s central location makes it well-connected to other parts of the country. The city is home to the busiest train station outside of London, and Birmingham International Airport offers flights to destinations around the world. This connectivity makes it an attractive destination for both residents and businesses. With the creation of the HS2 railway line, Central London will be less than 45 minutes away.


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Birmingham has undergone significant regeneration in recent years, with several major development projects such as the Bullring Shopping Centre and the new HS2 railway line. This regeneration has led to an increase in property prices and rental demand.

Strong economy:

Birmingham has a strong and diverse economy, with a significant presence in finance, banking, and professional services. The city also has a growing tech sector, with several startups and established companies choosing to base themselves in Birmingham.

Cultural attractions:

students attending university

Birmingham has a rich history and a diverse culture, with plenty of museums, galleries, and cultural attractions. These attractions, combined with a growing food and drink scene, make it an attractive destination for tourists and residents alike.

Quality of Life:

Birmingham offers a high quality of life, with excellent healthcare, education, and leisure facilities. The city has a range of green spaces and parks, as well as numerous restaurants, bars, and cafes. Additionally, it is a relatively safe city, with low levels of crime compared to other major UK cities.

In summary, Birmingham’s growing demand, affordability, strong transport infrastructure, regeneration, strong economy, cultural attractions, and future prospects make it a great place to invest in property.

The Time to Buy in London for Good Rentals Returns has Arrived!

London rental prices have historically been high, and that they have continued to rise in recent years, particularly in popular areas of the city. This can certainly lead to higher returns for landlords who own rental properties in London.

London rents are at a record high as prices in the capital have not increased this year and because a lot of first time buyers are choosing to remain on the rental ladder till mortgage rates settle down, the rental returns have soared and rental property is scarce.

Multifamily Housing in UK

There are a number of factors that can contribute to rising rental prices in London, including high demand for rental properties due to the city’s popularity and limited supply of affordable housing. Additionally, inflation, economic growth, and changes in government policies can also impact rental prices.

While higher rental prices may benefit landlords in terms of returns, they can also make it more difficult for renters to find affordable housing. This can be especially challenging for low-income individuals and families, who may struggle to find a place to live in London’s competitive rental market.

It’s important to note that rental prices can fluctuate over time, and that factors such as changes in the economy, housing policies, and population demographics can all impact the rental market.

Please get in touch to find out the best properties which will achieve highest rental returns for a Buy to Let in London

Why a Lower GBP is great news for International Buyers

With the UK facing a lot of uncertainty due to the energy bills rising , political changes and global recession, the GBP fell in the last quarter of 2023 being at its lowest value in decades.

For international investors however, this presents a great opportunity that should be utilised.

This makes NOW an excellent time to invest in the UK, as international investors are taking advantage of the exchange rates to maximise their investments. Investment in property is always a bankable option because of the markets relative stability compared to other more volatile assets.

Why was the GBP Falling?

Why was the GBP Falling

The exchange rate of the pound at the time of writing is £1 = $1.24 This means a single US dollar is worth 81p. This rate has fallen considerably from the start of last year when the GBP was worth $1.35.

Russia’s invasion of Ukraine has had a major economic effect on the world due to it being a major source of energy. 40% of the EU’s gas comes from Russia so the sanctions placed have impacted energy prices in the UK.

Political unrest and rapidly changing economy policies have also contributed to the fall.

The government has tried to stop this trend in several ways, such as the Bank of England repeatedly increasing interest rates throughout the year to 3.5%.

All of the above factors have caused the Great Britain Pound to drop sharply to some of the lowest levels.

Why is This Good For International Investors?

Why is This Good For International Investors

For international investors the various factors affecting the economic climate are perfect for investing in the UK housing market. They are in the best position to make the most of the current climate.

With the GBP falling, this means investing in USD BASED currencies will get you more for your money compared to in the past.

This means that you can invest less money compared to before the GBP began to fall, making UK investments BETWEEN 12-15% cheaper than usual.

This time will not last though as the UK’s political and economic instability calms down over time returning the GBP to its previous strength.

Unlike other sectors of the UK economy, the housing market has an excellent reputation for being stable thanks to UK property status as a physical asset, which sees growing value over time. The UK has also seen house prices rise at a very fast pace as supply issues have caused stratospheric demand.

Rentals have also been rising at a very fast rate, making buy-to-let a popular investment option. They offer a perfect mix of a monthly rental income to give you passive income, as well as capital appreciation increasing the value of properties over time.

Off plan developments have proven to be a great choice in the present climate, given their lower price point, flexible payment plans and future capital and rental yields. These can take longer to earn returns on, due to the time it takes to be constructed, so investing now means investors will save money compared to when the properties go on the market completed.

If you would like to learn more about the UK property market or begin your journey into investing in UK property, please contact us.

The 3 Best Investment Hotspots in the UK to look out for in 2023

Based on analysis of 2022 along with market forecasts, the Northern Cities are predicted to continue to dominate the best investment hot spots in 2023.

For the best opportunities it is important to look outside of London, the commuter towns of Reading, Staines and Slough and further north towards Birmingham and Manchester.

Within Birmingham, the Digbeth area and Jewellery Quarter, along with properties along Coventry Road are seeing the highest growth.

Within Manchester, Salford and Northern Green Quarter of Manchester City Centre have witnessed strong growth.

We believe that properties within the £350,000 to £500,000 mark will offer the best opportunities in this time. Regardless of the current economic climate, we see an underlying strength in this price bracket as it represents areas undergoing great regeneration and as catchment areas to bringing growing populations. This means higher rental yields and capital gains.

Three such areas are identified as follows:

1. Coventry Road, Birmingham

Birmingham City UK

The £500m expansion plan for Birmingham Airport will be bringing a huge number of jobs and high growth commercial activity both local and foreign to the area making Coventry Road one of the top investment spot for years to come. This is part of the HUB Growth and Infrastructure vision to deliver world -class infrastructure and development needed to power growth across the region. It’s a unique regeneration bringing together a combination of existing, world class assets to create Europe’s best- connected destination for leisure, business and living.

2. Reading, Berkshire

Reading Berkshire UK

Reading is only 22 mins by train and with the Crossrail now open, passengers don’t need to change trains to get across the city. University of Reading is internationally renowned creating a huge footfall in the town, attracting widespread investment as well as job creation. Reading is one of the top places in the UK to do business, beating major locations like Nottingham and Glasgow. It also has the highest wages outside of London.

It has a strong technology sector and holds the top place for the city most likely to grow the most in the next few years.

3. Salford, Manchester

Salford Manchester UK

Rental yields around the Salford area have been very strong for some time now. It is known as a hub for academic and business talent and houses. UK’s Media City which is where all the communication powerhouses have their head offices. With an already tremendous amount development, the city is splendid and exciting to live in. With the £1bn regeneration of Media City, Salford has seen an increasing rental demand and property price boosting the economy.

For information on developments within these regions, please contact us and one of our experienced agents will be in touch shortly.

Demand for rental properties up 23% from last year in the UK as rents soar

Demand for rental properties across the UK has leapt by 23% in a year, Rightmove research has found, putting more pressure on a market already in limited supply therefore pushing rents to a record high.

The number of people enquiring has gone up considerably driven partly by first time buyers putting their buyers plans on hold due to mortgage rates escalating.

This has led to an increase in rental prices as landlords realise the demand with the average rent now at a record £571 a week in London.

Multifamily Housing in UK

However, the availability and cost of mortgages has begun to stabilise following a frenzied two months after UK politics caused mayhem in the markets with indications rates could drop next year.

The average two-year fixed rate has come down from a peak of 6.65% a month ago to 6% now. Meanwhile the average five-year fix is now below 6% for the first time.

Mortgage rates are expected to settle at a higher level than buyers are used to in recent years. The Bank of England is expected to raise its base rate to 4.25% by Q2 next year, although that is lower than feared.

There has also been a huge surge in demand for rental units as students and workers have flocked back to the city post Covid. This is paired with a steep drop in supply – London just does not have enough supply to meet the ever-growing population demands.

This is great news for both current landlords and potential Buy to Let buyers.

Please contact one of our property experts to access ready investment property in high demand areas.

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