The central bank voted to reduce the benchmark lending rate from 5.25% to 5%, a move anticipated to have a significant impact on the middle and lower ends of the property market, where home purchases are more often financed, rather than on the discretionary top end.
The cut will be a “boost to sentiment to the prime property markets going forward,” said Mark Parkinson, Middleton’s co-founder and Managing Director.
“It reflects a positive direction of travel. Less positive was this morning’s news of the government confirming the end of the non-dom status,” Parkinson said, referring to the scrapping of a tax law that has benefited the wealthy for centuries. “But both of these developments today will provide buyers and sellers more certainty of what is in store.”
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