After the announcement on the 8th May that base rate would be dropping by 0.25 percentage points to sit at 4.25%, Auction House has seen a clear increase in interest from buyers, with bidders for their 12th May auction soared up a 128%. This figure rose yet again for their auction on the 19th May, marking a further 39% increase on the week before.
These improved bidder numbers reflect the renewed confidence of buyers and investors in the wake of the base rate cut, say Auction House.
Inflation for April was higher than expected, but Auction House predicts that, with further reductions to base rate being forecast for the remainder of the year, this renewed positivity will continue, particularly for larger landlords.
Oliver Prior, national commercial director of Auction House, commented: “Appetite among those with larger property portfolios remains strong.This is due to their greater financial headroom and longer-term view of the market. As a result, they will be using this base rate cut to secure the most competitive mortgages and snap up properties with profit potential.”
