Leeds househunters handed boost as interest rates cut means affordable 'dream home' in sight, experts say
Leeds househunters have been handed a fresh boost after the Bank of England cut interest rates - with a leading city mortgage broker predicting buyers in the region will soon be cashing in.
The Bank’s decision to slash the base rate by 0.25 per cent to 4 per cent comes as affordability improves and prices in the city edge down from record highs, experts said.
Average house prices in Leeds have dipped from £244,023 in March to £241,163 in May, according to Land Registry data analysed by homebuying platform OneDome.
Leeds-based mortgage broker Elliott Benson, of Sett Mortgages, said: “Yes, house prices are still high relative to incomes but they’re a lot lower than they have been for over a decade.
“That’s really starting to help more people in Leeds and Yorkshire as a whole buy their first dream home. Demand for property here is very strong and Leeds is awash with first-time buyers.”
Nationwide recently revealed that the UK house price to earnings ratio has fallen to its lowest level in more than a decade at around 5.75 - making more homes affordable for aspiring owners.
Mr Benson added: “Following the rate cut by the Bank of England, competition among lenders could become fierce and borrowers in Yorkshire will benefit. If there’s one issue in Leeds and Yorkshire more widely, it’s that while demand is high, supply continues to be an issue.
“There’s a lack of homes for sale and, in some cases, we still have multiple buyers competing for the same property. As someone who has been on the front line of the Leeds property market for the past ten years, I have only ever seen steady or high demand here and, now that the Bank of England has lowered the base rate, demand for property could skyrocket.”
Across Yorkshire, prices have slipped from £212,483 in March to £203,836 in May - but remain 7% higher than a year ago.
OneDome boss Babek Ismayil said: "While house prices in Leeds and across Yorkshire have dipped slightly since the stamp duty changes in April, they're still well above where they were this time last year.
"We’re seeing a clear north-south divide emerge at the moment, with prices in northern regions proving far more resilient than those further south. The recent easing in price growth is likely just a short-term correction following a period of strong growth, rather than the start of any sustained decline.”
Meanwhile, Halifax’s Head of Mortgages Amanda Bryden said that “with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving”.