Industry News

Good News for Home Buyers: Interest Rates Drop and Future Price Growth Predicted

8 August 2025

If you’ve been thinking about buying your next home, there’s some positive news on the horizon. 

The Bank of England has cut interest rates to 4%, the lowest level in more than two years, making mortgages more affordable for buyers. This is the fifth rate cut since August last year and marks a significant step in helping to reduce the cost of borrowing. 

Lower interest rates mean that monthly mortgage repayments could become more manageable, opening the door for more people to take their first step onto the property ladder or make their next move. 

Positive Outlook for House Prices 

Market experts are predicting steady growth in UK property prices over the next five years. Current forecasts suggest: 

• Zoopla: 13–15% rise by the end of the decade, potentially adding around £35,000 to the value of an average UK home. 

• Knight Frank: 22.8% rise by 2029, with prices growing steadily from 2025 onwards. 

• Savills: 24.5% rise by 2029, driven by lower interest rates and improved affordability tests. 

For buyers, this means that investing in a home now could not only secure a lower mortgage rate but also provide strong potential for future value growth. 

Find Your Perfect Home with Fletcher Homes 

With interest rates down and the market outlook looking positive, now could be the ideal time to reserve a home at one of our stunning developments: 

• Miller’s Gate, Tibberton, near Newport – Just one home remaining at this, sought-after location, Plot 20, The Jebb. 

• Florence Fields, Leintwardine – Stylish 3, 4- and 5-bedroom homes surrounded by scenic countryside. 

• Guinevere Park, Oswestry – Modern 2, 3- and 4-bedroom homes in a well-connected community. 

All our homes are energy-efficient, built to a high specification, and available with a choice of incentives and assisted move options to make your purchase as smooth as possible. 

📞 Contact our Sales Team or visit one of our developments to see how we can help you find your perfect home.