Whilst there had been expectations of further rate cuts this year, the Bank has instead chosen a more cautious approach, keeping rates steady as it monitors the economy and the potential for inflation to rise.
At headline level, it’s easy to interpret this as a sign of a market under pressure, but what we’re seeing in the property industry reflects a more positive market.
What we’re seeing locally.
Holding the base rate steady at 3.75% provides a level of consistency that buyers and sellers have been waiting for. Importantly, this is now being supported by what we are seeing across our local areas.
Encouragingly, there is greater stability in mortgage products, increased confidence from lenders, and a noticeable uplift in activity from first-time buyers compared to last year.
Alongside this, our data has pointed to modest but consistent house price growth, reinforcing the sense that the market is not only active, but underpinned by improving sentiment.
Conditions remain more measured than in previous cycles, whilst the above factors are helping to support a market that is steady, sustainable and moving forward.
Activity in the local market.
Across North Hampshire, Surrey and Berkshire, the market continues to move in a steady and encouraging way:
This is a market built on measured, considered decision-making, which is a healthy place to be.
A market that’s adjusted.
The wider economic picture is undoubtedly complex. The Bank of England has highlighted ongoing risks around inflation, yet despite this, the local property market continues to show resilience.
Recent trends have highlighted:
In practical terms, this means the market has adjusted to the current conditions, with transactions continuing at a consistent pace. We are not in a period of sharp correction, instead, we are in a period of stability and normalisation.
What this means if you’re planning a move.
When the market is more settled, the fundamentals come back into focus. Today’s base rate announcement from the Bank of England doesn’t define the full picture. Whilst the Bank continues to monitor inflation closely, from a property perspective, the market is active and it is holding steady.
Whether you’re a homeowner looking to sell, a landlord seeking regulatory advice or tenants, or a developer planning your next project, we can help. Feel free to contact us or book a free valuation.
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