Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of the recent fall in mortgage rates on the wider UK economy.

The path to lower interest rates is through low inflation, and the government is fully committed to supporting the Bank of England get inflation back down to the 2% target, including by keeping borrowing under control.

The pricing and availability of mortgages is ultimately a commercial decision for lenders, in which the Government does not intervene. But our plan to bring inflation down is working. Average offered mortgage rates on 2-year and 5-year fixed rates have also fallen from their peak in Summer 2023.

The Bank of England has outlined some of the links between interest rates, housing markets and wider economic activity in its November 2023 and February 2024 Monetary Policy Reports.