A chief at a leading Worcestershire estate agent has responded to the Bank of England's cut in interest rates.

Matt Nicol, the managing director of Nicol & Co., based in Worcester, Droitwich and Malvern, welcomed the reduction in the Base Rate from 5.25 per cent to five per cent.

He said: "The recent reduction is a welcome shift, especially as it's been held at 5.25 per cent for the past year.

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"With inflation now back at the government's 2% target, we're seeing a more stable economic environment, which is crucial for both buyers and sellers."

He said that this shift will bring relief for potential homebuyers, as mortgage rates are beginning to stabilise.

Mr Nicol said: "For those who have been waiting to enter the market, this reduction is particularly good news.

"Not only are mortgage rates starting to settle, but we’re also seeing the first sub-four per cent rates for borrowers with larger deposits representing a £190 saving per month for the average UK home, against the average peek mortgage rates seen in September 2023."

He added: "This trend, coupled with increased competition among lenders, offers more favourable conditions for those looking to secure a mortgage.

"However, we advise potential buyers not to leave it too late. As more buyers enter the market, competition for properties is likely to increase.

"We’ve seen before, particularly in 2021/22, how competitive bidding can become the norm, making it more challenging to secure a desired property. It's a promising time for the property market, and we encourage anyone considering a move to explore their options now."