Yorkshire Country Properties boss welcomes interest rate cuts

Paul Brown, who lives in Easingwold, and is the managing director of Huddersfield-based Yorkshire Country Properties said the decision by a number of leading mortgage lenders to cut their rates has provided the embattled UK housing market with much-needed hope at the beginning of the year.

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Paul is formerly the founder and MD of Caedmon Homes, which developed three sold-out sites in York, Whitby and Boroughbridge including St John’s Mews, in Penley’s Grove Street just outside the city walls.

His comments come after HSBC has announced cuts on its residential mortgage interest rates, with several falling below five per cent for the first time since April 2023. The largest drop was to its 10-year fixed-rate remortgage deals, one of which is down from 4.99 per cent to 3.99 per cent.

Reductions have also been announced by Britain’s largest mortgage lender, Halifax, including to its two-year fixed-rate remortgage which dropped from 5.64 per cent to 4.81 per cent.

It marks a sharp reduction from last summer when the average rate of a two-year fixed deal hit a 15-year high of 6.66 per cent.

Yorkshire Country Properties homes (Image: Supplied)

Paul said: “There is certainly a degree of positivity in the market going into 2024 that was absent this time last year, driven by an increase in lender confidence. Competition has returned and now the banks are competing with each other once again.

“It is fair to say the stability in interest rates and the general more optimistic market sentiment is now resulting in an increase in enquiry levels, especially in the over £450,000 house price sector. Already this year we have taken two new reservations at our development at Skelmanthorpe, near Huddersfield.

“This positivity is also being reflected in the increase in the number of visits to our Experience Hub at our Shepley development, compared to this time last year, which is extremely encouraging. All our Phase 1 homes at Shepley will now be ready to move into by the end of next month, which marks the conclusion of a development of which we are extremely proud.

“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 in Shepley, Skelmanthorpe and Denby Dale 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.”