With the development of the UK economy and changes in the property market, the UK may enter an era of low interest rates in the coming years. According to forecasts by KPMG and Capital Economics, the Bank of England may take measures to reduce the base interest rate to 3% in response to a significant decrease in inflation. This trend is expected to persist, with UK inflation rates forecasted to continue declining over the next three years, necessitating adjustments to monetary policy by the central bank. Yael Selfin, Chief Economist at KPMG, notes that as inflation gradually comes under control, the timing for interest rate cuts is approaching.

In terms of the UK economy, KPMG predicts growth of 0.3% this year and 0.9% next year, with ongoing recovery helping alleviate the pressure from declining inflation. However, Capital Economics also suggests that UK inflation rates will continue to decrease over the next few years, potentially leading to significant interest rate cuts by the Bank of England in 2024 and 2025, with the base interest rate expected to drop to 3%.

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In the property market, despite high property prices in London, homeownership is still considered more cost-effective than renting. Data shows that despite higher initial down payments for first-time buyers, homeownership costs remain lower than rental expenses due to rapid increases in rent. Particularly amidst the current rise in mortgage interest rates, rental expenses in some areas have surpassed homeownership costs. A survey by Halifax indicates that even in high-priced areas like London, homebuyers still prefer purchasing over renting to achieve long-term financial and lifestyle stability.

Regarding homebuyer preferences, recent surveys indicate that more people are choosing to stay in London for homeownership. This may be attributed to London's post-pandemic recovery and the need for some individuals to spend part of their time working in the office. The survey also shows that London homebuyers are more inclined to choose newly built homes because they believe in better quality, higher energy efficiency, and longer warranty periods for new properties.