Bank of England Cuts Interest Rates to 4.5%

The Bank of England has cut interest rates for the third time in just under a year, bringing the rate down to 4.5%. The move, supported by the majority of the Monetary Policy Committee, is aimed at boosting economic growth amid easing inflation, which currently sits at 2.5%. However, concerns remain that rising energy costs and other pressures could push inflation higher later this year. This is the lowest base rate since June 2023. The Bank of England has also adjusted its growth forecast, now expecting the UK economy to grow by 0.75% in 2025, down from an earlier prediction of 1.5%. The rate cut could lead to lower borrowing costs for some homeowners and businesses, but the impact will vary depending on individual financial arrangements. As lenders respond to the change, borrowers and savers alike will be watching to see how it affects their finances.

The Bank of England has lowered its key interest rate by 0.25 percentage points to 4.5%, marking its first cut in months.

thumbnail_image-3.png

image-3.png

large_image-1.png

medium_image-1.png

small_image-1.png

thumbnail_image-1.png

image-1.png

medium_image-2.png

small_image-2.png

thumbnail_image-2.png

image-2.png

Landlord Registration: Key Updates & Changes

Changes are coming for landlords and tenants across Northern Ireland, and staying informed is crucial. The Landlord Registration Scheme is a key area of focus, ensuring greater transparency and accountability within the private rental sector. If you're a landlord or tenant, here’s what you need to know. Landlord Registration Scheme: Key UpdatesThe Landlord Registration Scheme collects and maintains accurate records of private landlords and their properties. Under Northern Ireland law, all private landlords must register with the scheme to continue renting properties legally. How Registration Works<ul><li>Registration is mandatory for all landlords letting private tenancies in Northern Ireland.</li><li>It is valid for three years and helps improve tenant confidence in landlords while promoting good practice in the sector.</li><li>Landlords must provide accurate and up-to-date information about themselves and their rental properties.</li></ul>Registration Fees<ul><li>Online registration: £70</li><li>Paper registration: £80</li><li>The fee covers all properties owned by the landlord under one registration.</li></ul>What Happens if a Landlord Doesn’t Register?Failing to renew your registration while continuing to let properties means you are not complying with the law. This could lead to:<ul><li>A fixed penalty of £500</li><li>A court fine of up to £2,500</li></ul>What This Means for TenantsTenants should ensure that their landlord is registered with the scheme. A registered landlord demonstrates compliance with legal requirements and a commitment to providing a fair and professional rental experience. If you suspect your landlord is not registered, you can check their status and report concerns via NI Direct. &nbsp;<hr> Next Steps for Landlords<ul><li>Check your registration status to ensure it is up to date.</li><li>If your registration is due for renewal, complete it as soon as possible to avoid penalties.</li><li>Stay informed about any further updates to landlord legislation in Northern Ireland.</li></ul>By ensuring compliance, landlords contribute to a fairer rental market, while tenants benefit from improved protections. For more details on the Landlord Registration Scheme and other rental requirements, visit NI Direct. &nbsp;

All NI landlords must register under the Landlord Registration Scheme. Learn key updates, fees & penalties to stay compliant with the law.

NI Housing Market:

It’s that time of year again when the crystal ball comes out and economists and analysts look ahead to what lies in store. While 2024 began with caution and concern, what materialised won’t look too bad in the history books. Average property prices reached £221k, up 6%, and typical rents now sit at £900 per month, rising 8.7% over the year.Encouragingly, the sales market is showing fresh signs of optimism, with new stock listed for sale up 8% year-on-year. However, the rental sector remains challenging, with listing volumes still well below long-term averages.On the leading indicator front, all signs point to a strong start for Q1 2025:<ul><li>Website visitors are up 20%.</li><li>Engaged Audience search time has increased 3%.</li><li>Enquiries to agents have risen 6%.</li><li>Agreed sales volumes are up 14% in the last three months, signalling a healthy pipeline of completions into the new year.</li></ul>The Outlook for 2025Overall, the year ahead looks more positive. Demand is improving, supported by a robust local labour market and a stable—potentially improving—interest rate environment. This should form the basis for relative stability, with modest price growth in the 3-5% and transaction levels forecast at around 25,000, in line with long-term averages.4 Key Themes to Watch<ul><li>Interest Rates &amp; Lender Competition: Mortgage rates are expected to soften gradually. Intense lender competition, particularly for re-mortgage business, will present opportunities, even if average rates remain modest.</li><li>Housing Supply: Sales stock has improved, but rental listings remain weak, and housebuilding is still below long-term averages. The recently published Housing Supply Strategy will be critical to addressing supply issues across all tenures.</li><li>Buyer Trends: First-time buyers remain the market’s largest group. While some softening in mortgage rates will help, affordability constraints may keep budgets in check.</li><li>Stamp Duty Changes: The revision to Stamp Duty Land Tax (SDLT) for Northern Ireland and England from April 2025 will likely have a limited local impact but could distort wider UK market trends, with potential knock-on effects here. &nbsp;</li></ul>In summary, the Northern Ireland housing market heads into 2025 with renewed momentum. Demand remains strong, sales activity is improving, and economic conditions are stabilising. While supply challenges persist, the outlook is for modest growth, increased buyer opportunities, and a market that continues to improve.<hr>To learn more about the Northern Ireland housing markets, visit our housing market reports for more insights.

Explore the Northern Ireland housing market outlook for Q1 2025, including trends in house prices, interest rates, and rental demand.

Bank of England Cuts Interest Rates to 4.5%

Relevant Articles & Guides

Landlord Registration: Key Updates & Changes

NI Housing Market: What to Expect in Q1 2025

How BBC's Hope Street Boosted Donaghadee Homes