A leading Yorkshire developer has warmly welcomed this week’s cut in interest rates by the Bank of England.
Oliver Bottomley, of award-winning Huddersfield-based Vivly Living, said the decision by the Bank to cut the base interest rate by 0.25 per cent from 4.75 per cent to 4.50 per cent has provided the embattled UK housing market with much-needed hope.
This followed a 0.25 per cent cut in November and the base rate is at its lowest since June 2023.
Andrew Bailey, the Governor of the Bank of England, said the Bank was taking a gradual and careful approach to reducing rates further and he warned about a lack of growth within the UK economy.
This cut in interest rates comes hard on the heels of proposals to ease mortgage rules in order to stimulate the housing market.
Oliver commented: “Taken together, these two announcements are very good news. They will deliver a timely confidence boost to the housing market in Yorkshire and across the UK. Despite headline inflation falling, the Bank has remained cautious about making a decision too soon that could reignite inflationary pressure.
“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 it’s hopefully going to become easier to get a mortgage. And I’m very hopeful that more cuts will follow.
“This base rate cuts in November and yesterday should hopefully provide a new wave of confidence and affordability for many. With a government in power that is committed to delivering near two million new homes, the bank’s decision could be a real turning point for homeowners and those who aspire to buy.
“There’s lot of pent-up demand in the market after months of political uncertainty and the base rate cut is the catalyst that we’ve been waiting for. We’ve already seen monthly mortgage approvals sitting at consistently high levels as this pent-up demand across the market has been released and, with interest rates now starting to fall, there are genuine grounds for optimism in the residential property market.”
Vivly Living, formerly Yorkshire Country Properties, is currently on site with three successful West Yorkshire developments at Shepley, Skelmanthorpe and Denby Dale.
Oliver added: “This stability 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 £400,000 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 was shortlisted in Housing Project of the Year category 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, all of which have been sold.
“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.”
