A LEADING Yorkshire developer has warmly welcomed the Bank of England’s promise that interest rates will be cut more aggressively if price rises remain under control.
Paul Brown, the managing director of award-winning Huddersfield-based Vivly Living, said the comments by the Bank’s Governor Andrew Bailey, will provide the embattled UK housing market with much-needed hope.
The Bank cut interest rates from 5.25% to 5% in August, which was the first drop in more than four years.
Mr Bailey also said that the Bank was watching developments in the Middle East "extremely closely", in particular any movement in oil prices that could fuel inflation. The Bank of England has two more meetings left this year to decide on interest rates, in November and December.
At the Bank's last gathering in September, Mr Bailey was optimistic that borrowing costs would continue to fall. But he said at the time it was "vital" inflation remained low.
Huddersfield-based Vivly Living, formerly Yorkshire Country Properties, is currently on site with three successful West Yorkshire developments in the villages of Shepley, Skelmanthorpe and Denby Dale.
Paul Brown commented: “Andrew Bailey’s positive and upbeat comments should provide confidence boost to the housing market in Yorkshire and across the UK. Despite headline inflation falling, the Bank had remained cautious about making a decision too soon that could reignite inflationary pressure. The time has now come to be braver, with inflation under control.
“For homeowners and those who’ve been looking to get on the property ladder, the past few years have been tough, but there are signs of it changing. Rates on mortgage deals have been falling, and given Mr Bailey’s assessment of the country’s finances, I’m very hopeful that more cuts will follow.
“With a new government in power that is committed to delivering near two million new homes, the Bank of England’s positivity could be a real turning point for homeowners and those who aspire to buy.
“We’ve already seen monthly mortgage approvals sitting at consistently high levels as this pent-up demand across the market earlier this year has been released and, with interest rates potentially falling further, there are genuine grounds for optimism in the residential property market.”
The Bank of England raised interest rates steadily from the end of 2021 as inflation surged, partly due to the increase in energy prices following Russia's invasion of Ukraine. However, now that inflation is currently close to the Bank's 2% target, attention has focused on how many rate cuts will be made.
Many analysts expect the Bank to reduce rates at its meeting in November. However, following Mr Bailey’s recent upbeat comments, expectations increased of a rate cut in December as well.
Paul Brown added: “The prospect of a fall in interest rates and the general more optimistic market sentiment is now resulting in an increase in enquiry levels and sales at all three of our sites, especially in the over £450,000 house price sector.
“It is so important to remember that all parts of the new homes market aren’t in decline, despite what some pessimists might say. Our starter homes initiative at our three sites has been incredibly successful with first-time buyers keen to stop paying high rents and to climb on to the property ladder for the first time. There is also strong evidence to suggest that demand for well-built attractive family homes, correctly priced, remains healthy and should gather pace during the next 12 months.”
Vivly Living has been shortlisted in Housing Project of the Year category in the 2024 Building Magazine awards for its successful Knowle Grange development in Shepley and the company won of a raft of regional and national awards last year.
Phase One of Knowle Grange comprises 31 houses, 28 of which have already been sold or reserved.
“The Shepley development is a fantastic showcase for us. We are very conscious of building homes with both character and individuality, which blend in seamlessly with their immediate surroundings. Traditional stone exteriors, combined with contemporary interiors and stunning views, make our properties highly prized and unique. We are delighted they have proved so popular.”
Both Vivly Living’s other West Yorkshire developments at Denby Dale and Skelmanthorpe are progressing well, with houses at its brand-new Denby Dale site having just achieved a gold star rating for their energy efficiency and environmental impact.
The Willows development, which comprises 34 new houses including eight one-bed starter homes, has undergone the Government’s rigorous Standard Assessment Procedure (SAP) which assess a property’s green and sustainable credentials. The development has received an A rating, the highest SAP accolade there is.
Already 10 of the Denby Dale homes have been bought, with one more reserved. Prices range from £152,000 to £560,000 and the development will be fully completed by early next year.
Paul Brown added: “We are so proud of The Willows. Situated in the breathtaking Yorkshire countryside, yet still within reach of excellent local amenities, our development provides the best of both worlds with a vibrant yet peaceful lifestyle. It is also close to Huddersfield, recently named as the UK’s premier property hotspot.”
• For more information about Vivly Living’s developments, please visit www.vivlyliving.com
