Bank of England Rate Cut Offers a ‘Boost to Sentiment’ in the Luxury Sector

The Bank of England’s first interest rate cut in four years on Thursday prompted a sigh of relief from home buyers and sellers nationwide that will boost confidence in the luxury home market, too.

The central bank voted to cut the benchmark lending rate from 5.25% to 5% in a move that is expected to have a more pronounced impact on the middle and lower ends of the property market—who more frequently finance their home purchases—as opposed to the more discretionary top end.

However, it may prove to be an auspicious sign for foreign investors, according to Simon Barry, head of new developments at Harrods Estates. “Today’s rate cut, hopefully the first of several, sends a resounding message to international investors: Now is the opportune moment to move back into U.K. property,” Barry said.

“Investors who have enjoyed solid returns in cash over the past two years may now be tempted to shift their wealth into property before the market picks up, particularly in prime central London, where some areas remain undervalued compared to their 2014 peaks,” he added.

Though high-end buyers tend to be less affected by interest rate fluctuations, they aren’t completely decoupled from the shifts. “Even those who can afford to purchase properties outright at the top end of the market often opt for financing, as it can be a savvy investment strategy,” according to Barry.

Overall, he said, “this announcement will be warmly welcomed across the property sector.”

Following 14 consecutive rises, the base rate had been held at 5.25% since August 2023.

If nothing else, the cut will be a “boost to sentiment to the prime property markets going forward,” said Mark Parkinson, managing director of London-based real estate consultant Middleton Advisors.

“It reflects a positive direction of travel. Less positive was this morning’s news of the government confirming the end of the non-dom status,” Parkinson said, referring to the scrapping of a tax law that has benefited the wealthy for centuries . “But both of these developments today will provide buyers and sellers more certainty of what is in store.”

In July, asking prices across the U.K. dropped 0.4% monthly to £373,493, “a bigger July drop than usual,” according to a report from online property portal Rightmove

“Capacity for house price growth will remain limited until there is a more significant reduction in the cost of debt,” said Emily Williams, director of research at estate agency Savills. “However, this is a clear signal to the market that the Bank feels it has turned a corner in the battle against inflation, and it should give most buyers and sellers confidence that the market will improve as we head into 2025.”

A breathtaking view and a lush quarter-acre block are high up the wish list with any lifestyle property, but this contemporary Buderim residence takes things to another level.

Designed and built by owners Stu and Nat Faid, the Sunshine Coast home reflects their vision and incredible attention to detail.

As an architect and designer, Nat believes a prime position deserves an incredible project.

“The heart of the house is undoubtedly the living area and expansive deck. At over 100sq m and elevated more than 6m above the ground, you literally feel like you’re floating. We love how the views stretch from the Glass House Mountains along the coastline to Mooloolaba. Across the ocean, you can even see the sandbanks on Moreton Island,” she says.

While the views and the 1024sq m land parcel make their mark, it’s the suspended 12m heated shipping container swimming pool that’s making waves locally.

“When people arrive, the first thing they do is look up,” Nat adds.

After purchasing the property in 2021, the pair knew the existing house wouldn’t live up to their family of four, but they fell in love with the location and outlook so decided to adapt.

Initially, the pool’s unique design was simply a reaction to an everyday Queensland problem, but ultimately became a feature.

“The pool was at first a product of practicality. We wanted to be able to watch the kids in the pool from the house, but to do that required elevating the pool more than six meters off the ground,” Stu says.

“When we looked at the engineering required, it conflicted with our minimal-touch ethos in preserving the land and the visual aesthetic of the finished design. What followed was a lot of searching for a solution, and as luck would have it, the answer was almost on our doorstep.”

Shipping Container Pools seemed like a no-brainer answer to the pool problem. Having moved internationally multiple times, the couple saw an opportunity to weave their personal story into the fabric of their new home.

“The opportunity to incorporate a nod to that chapter of our life into the build was too good to miss,” he says.

“It also unashamedly reinforces the origins of the pool construction, which ties into the rest of the design in the house. Throughout the home, we have embraced where the old meets the new, we have not tried to blend, cover or hide the origins of the home, we have chosen instead to make sure the evolution of the house is clear to see.”

The Faids’ global family journey is evident throughout the home, from the grand Middle Eastern entry doors sourced from Dubai where the couple once lived, to the remarkable views from the Glass House Mountains to Mooloolaba.

Created to enjoy every season, the house has a space for all eventualities with an open plan living area spilling out to the full-width deck and pool, a sleek kitchen with an Ilve integrated fridge and freezer, Bosch ovens, an induction cooktop, built-in coffee machine and microwave, two dishwashers, filtered water and a butler’s pantry.

Four spacious bedrooms each have built-ins, the main features a large ensuite with twin vanities and two more bedrooms share a“Jack and Jill” style bathroom. There is also a third full bathroom.

The Buderim home is 12.5kms from Mooloolaba and the Mooloolaba River National Park with the Sunshine Coast Airport 13.5kms to the north, however Stu adds that there is rarely a reason to leave.

“It would be fair to say that apart from popping down the hill to go to the beach, we often go days without ever leaving the village. It’s really is a wonderful spot.”

Packed with mod cons, the Buderim home also features six-zone ducted air-conditioning, engineered oak floors and a double-sided Stuv wood-burning fireplace, a mudroom, heated floors and sensor lights in the bathrooms. There is also a private elevator, solar power and battery, as well as landscaped gardens and a large lock up garage and shed.

The property at 10 Orient Court, Buderim is listed with Zoe Byrne and Greg Ward from Ray White Buderim and will go to auction on September 22 at 9am at Mercedes-Benz Sunshine Coast, 65 Maroochy Blvd, Maroochydore.

Bank of England Rate Cut Offers a ‘Boost to Sentiment’ in the Luxury Sector

The first cut in four years will still fuel confidence among less rate-sensitive consumers

This sky-high home on the Sunshine Coast with iconic shipping container pool is a testament to modern design and engineering.