Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Majority of Primis Brokers Expect Base Rate Rise in Second Half of 2024

Nearly six in ten Primis brokers (59%) expect the Bank of England to raise its base rate during the second half of 2024, according to a series of surveys conducted at recent Primis events. The findings highlight ongoing concerns about borrowing costs and their impact on the UK property market.

Of those surveyed, 14% considered a base rate increase 'very likely' this year, while 44% thought it 'likely'. In contrast, 28% viewed an increase as unlikely, and 13% were unsure. The survey results come at a time when the majority of households are still struggling with the cost of living.

When asked about the biggest factors affecting households, 61% of brokers cited day-to-day living costs such as bills, food, and energy. This was followed by global events at 19%, and mortgage rates and borrowing costs at 11%.

The pressure on household finances appears to be influencing customer behaviour. More than half (58%) of brokers reported that customers are becoming more cautious or delaying decisions, while 20% said customers are increasingly prioritising shorter-term fixes.

The remortgage market was identified as the fastest-growing area of consumer demand by 67% of brokers, far ahead of first-time buyers at 22%. Later life lending and equity release accounted for 4%, and buy-to-let for 3%.

Looking ahead, almost two-thirds (63%) of brokers expect demand for advice to rise over the next six months. Meanwhile, 29% expect demand to remain unchanged, and 9% foresee a decline. Demand for protection products is also showing signs of increase, with 46% of brokers observing growth, 31% seeing no change, and 24% noting a decrease.

These trends are relevant for letting agents and inventory clerks, as changes in borrowing costs and consumer caution may influence rental demand, remortgaging activity, and the overall pace of property transactions in the coming months.