What will happen to house prices if interest rates fall to 2.75%

The last few years have been tough for homeowners and tenants. Interest rates have increased from 0% to 5.25% in a short period of time, resulting in values stagnating and landlords increasing rents to cover their increased interest rate costs.

Interest rates were cut in August 2024 and we're now beginning to see them decrease BUT what will happen if they fall aggressively?

Goldman Sachs a large American bank has predicted that interest rates will fall to 2.75% by Nov 2025.

Currently, house prices in the North-East have increased by 5% year on year, in a tough environment and rents are up around 40-50% over 3-4 years.

Rents have increased more in the last 4 years than in the last 20 years.  This inflation needs to flow through into house prices and with interest rates decreasing to 2.75% you're probably going to see a boom in house prices in the North-East.

I'm fully expecting house prices to increase by 30-40% over the next 3-4 years.  So if you're interested in buying I'd start looking now...

Once we start to see interest rates being cut aggressively you'll begin to see house prices move-up quickly - what are your thoughts?