In response to inflation dropping below the target rate of 2%, recent comments from the governor of the Bank of England, Andrew Bailey, indicated that UK policymakers could be “a bit more aggressive” in their approach to rate cuts if inflation continued to cool.

But what does this mean and what impact will it have on the conveyancing sector?

Lower interest rates, allows the market to open up as mortgage costs become more affordable. As a result, more buyers enter the market and the demand for houses increases. Not only does it mean you are likely to have an easier time selling your property due to a higher demand, but also means you are likely to sell it for a larger sum due to increased buyer competition.

This has a direct impact on conveyancing services in the UK as the more property transactions that take place, the busier the conveyancing market becomes. This is a double edged sword:

• On one hand it’s great for conveyancers as job security is raised and more opportunities become available, which in turn drives up salary and becomes a candidate led market.
• On the other hand it means that caseload levels get higher, work based stress can increase, client expectancy has to be managed and all of which leads to more conveyancers leaving the profession. Also known as the ‘Conveyancing Crunch’

It’s unlikely that the UK housing market will return to the ultra-low interest rates that it saw pre-covid. However with the recent predications that interest rates may fall as low as 2.75% by 2026, many are hoping the housing market will open again for investment and new buyers.

The impact for conveyancers will be twofold, you will be busy BUT it will quickly lead to you being in demand and market salaries increasing because of this!