There’s no denying the fact that we’re living in turbulent times. However, whilst the current US presidency continues to draw clouds around the world via its rollercoaster of tariffs, there may be a bright side for the Surrey and Hampshire property market. Sebastien Lewis, Managing Director at Warren Powell-Richards, explains why.
The Trump 2.0 era is certainly something to behold. And, as the markets fall, along with a large swathe of Surrey and Hampshire homeowners’ pension pots, it’s quite understandable (reasonable, even) that people across these two counties are likely to feel a little despondent.
Add to this the fallout of the Trussonomics era, which saw homeowners ready to make their next move do a U-turn as the UK economy ground to a halt following a number of questionable decisions by the short-lived Prime Minister and then Chancellor of the Exchequer Kwasi Kwartang, and the Surrey and Hampshire property market has been rather slow to gain momentum.
However, amidst the chaos overseas there could be some benefits at home.
Taking the brakes off
As we all know, the cost of borrowing has gone up over recent years. Sadly, the knock-on effect of this is that mortgage rates have increased and people have become less inclined to move, reinforcing the negative spiral kickstarted by Liz Truss back in 2022.
A less fluid property market results in less choice of property for would-be movers to consider, and everything slows down. In increasing the base rate of interest over recent years, the Bank of England has, in effect, been applying the brakes.
However, following a new round of questionable decisions, this time made by Trump, the Bank of England may have to drop the base rate in order to promote spending and keep the economy ticking along.
Whilst there are a number of upsides to a falling base rate, in the context of the property market it means mortgage rates fall, buying and selling a home becomes more attractive and the property market gets moving again.
Economists are already forecasting that the anticipated two cuts to the base rate this year will likely extend to a third, the result of which is the equivalent of the UK economy taking the brakes off.
Certainty in uncertain times
Nobody likes uncertainty. However, one thing that we can be certain of is that if the base rate falls at the next Monetary Policy Committee meeting on 8 May, it won’t take long for mortgage rates to follow suit.
As spring is a time during which people tend to focus on moving, a drop in mortgage rates – should that happen – is likely to lead to a race to the market, where there’s suddenly an injection of new property listings.
Given where we are, politically and economically, our team of Surrey and Hampshire estate agents all feel that a property rush is on the horizon. As a result, we recommend that those considering a move in the first half of 2025 think about readying their property for sale sooner rather than later.
Not only will you beat the rush should mortgage rates fall, but also your property will be on the market before competing properties enter it.
There is a lot to be unhappy about right now. But if our predictions are correct, the Surrey and Hampshire property market won’t be one of them.
In uncertain times, partner with an estate agent you can be certain of. Contact your local branch of Warren Powell-Richards to arrange a no obligation valuation of your property. Alternatively, find your nearest Warren Powell-Richards office here.
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