THE finance director at Muir Group has welcomed the Bank of England’s decision to cut interest rates to 4%, describing the move as ‘another positive signal for the housing market and the wider economy’.
Derek Adam said the 0.25% reduction, alongside falling inflation and greater economic stability, is helping to rebuild buyer confidence.
“At Muir Homes, we’re seeing steady sales across our developments, with many customers ready to move now, and we’re well placed to meet that demand,” he added. “Over the past few years, our homes have never mattered more, not just as places to live, but as places to thrive.
“That’s why we’re continuing to invest in high-quality, energy-efficient homes in well-connected communities. Our new coastal development at Dalgety Bay in Fife is already generating strong interest from buyers seeking the lifestyle benefits of coastal living with the convenience of nearby city access.
“This latest rate cut could be the boost many people need to take the next step on their home buying journey.”
Rajan Shori, head of real estate England at law firm Gilson Gray, said that while the rate cut is ‘modest’, it sends a ‘clear signal of intent’ and will be welcomed by real estate investors navigating high capital costs.
“With inflation creeping higher and unemployment still elevated, this move reflects a cautious attempt to support growth,” he added. “With geopolitical noise aplenty, particularly surrounding US trade policy – this cut may reflect a desire to get ahead of possible knock-on effects and might represent a pre-emptive action to help steady investor sentiment.
“A timely step towards restoring real estate and property market confidence and unlocking delayed capital deployment but with the cut already baked into markets, all eyes will be on how far and fast the Monetary Policy Committee will cut rates further in line with the governor’s ‘gradual and careful’ stance which in turn will depend almost entirely on the jobs market.”
