More than a million homeowners will benefit from a fall in mortgage rates after lower-than-expected inflation pushed down the cost of borrowing.
It's the first time in months that the cost of a five-year fixed-term mortgage has dropped below 4%, while analysts predict further falls in the new year.
Official figures released this week show prices rose by 3.9% in the year to November, the smallest increase since mid-2021.
Bank of England economists may now open the door to cutting interest rates from as early as February.
Mortgage rate cuts will benefit both future home owners and the 1.6 million that are due to come off fixed-rate deals next year.
The falling cost of borrowing will also provide a timely boost to Jeremy Hunt, who could have up to £15b of additional fiscal headroom for tax cuts at next years budget, which is expected in March.
The UK's flagship share index, the FTSE 100, was down 19-points at 7,696 shortly after opening this morning.
Brent crude oil futures were up by 0.20% today, trading at $79.86 per barrel.