The latest data from the Office for National Statistics (ONS) brings encouraging news - December’s inflation rate fell by 0.1% to 2.5%, marking further progress toward pre-COVID levels. This continues a steady downward trend from the excessively high inflation of winter 2023/24.
For households, this decline means greater purchasing power, easing financial pressures and potentially boosting economic growth. The Bank of England will take this into account when reviewing interest rates on 6th February. While December’s figures alone may not prompt an immediate change, if January’s data follows suit, a rate cut could be on the horizon.
Currently, the Bank of England’s base rate stands at 4.75%, but a reduction to around 4.5% would be a welcome shift - particularly for first-time buyers and those looking to upsize. Coupled with public sector pay increases (4.75%–6%) and ongoing private sector wage growth, this could provide fresh momentum for the housing market, driving sales of both properties and land.
With the UK Government’s ambitious target to build 300,000 new homes annually over the next five years, now is an ideal time for developers, investors, and landowners to assess new opportunities. Understanding the true potential of a site - whether for development, renovation, or investment - starts with accurate data. Topographic and measured building surveys provide essential insights that help guide planning decisions, ensuring projects are built on reliable foundations.
As we move past Blue Monday (and the snowy start to the year!), this positive economic shift sets a hopeful tone for 2025. With greater confidence in the housing market, now is the time to plan ahead—making informed, data-driven decisions about land and property.