Inflation Drops to 2.3% – Now’s the Time to Start Your Project!

With UK inflation down to 2.3% and interest rate cuts on the horizon, now is a great time to start your self build or extension project and make the most of your budget
Articles by Build It magazine
by Build It
22nd May 2024

It’s been a tough few years for household finances and, not surprisingly, many self build and home extension projects have been put on hold. But that’s about to change (whoever wins the election this July!). A spate of good news for the economy – including the lowest CPI inflation for three years – means now is the perfect time to press the button and start making your dream home happen. Here’s why:

  • Inflation is down to a normal 2.3% (Consumer Price Index), the lowest it’s been in almost three years and just a hair’s breadth away from the Bank of England’s stated inflation target.
  • On Monday,  the Bank of England gave its strongest hint yet that interest rates could be cut this summer – with BoE deputy governor Ben Broadbent stating “the behaviour of the economy over the last six months is reassuring.”
  • The IMF yesterday predicted the UK economy will grow by 0.7% in 2024, and 1.5% in 2025 – and recommended the BoE should cut the base rate of interest by up to 0.75% this year. So, the signs are positive for mortgage rates.
  • Meanwhile, the cost of building has come down. The BCIS Materials Cost Index shows prices dropped in the last two reported quarters, and is expected to show a further 0.8% drop in the next.
  • While materials costs are likely to start rising towards the end of 2024, the important thing for self builders and renovators is that materials prices at the bottom of the curve – meaning there’s great value to be had for those able to start building sooner rather than later.
  • The Office for National Statistics House Price Index also shows a return to growth, with house prices up 1.8% in the 12 months to March 2024.

Now is the time to get ahead of the game!

Past experience tells us that, as we come out of recession, there’s a fantastic opportunity to beat the market and create great value in your home at an affordable price.

So, don’t wait until your preferred builder is too busy and materials prices are on the rise. Build It is here to help you get ahead of the market!

  • Find verified self build plots with planning permission and properties to renovate via Build It’s dedicated portal
  • Subscribe to Build It magazine for the latest value-adding project ideas, products, practical advice and market forecasts
  • Meet experts and specialist suppliers face-to-face at Build It Live and move your project forward fast. Use code KICKSTART for two free tickets!
  • Take one of our deep-dive Self Build Virtual Training Sessions to arm yourself with the knowledge you need to start building!

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