What does the latest interest rate rise mean for the Winchcombe property market?
03/08/2023: The Bank of England has today raised the interest rate by a further 0.25% to 5.25%, as widely expected. The rise is intended to help lower UK inflation but City expectations of how much higher interest rates need to rise have moderated in recent weeks. Most expect only one more increase before rates peak. This is an improvement on a few weeks ago when market expectations were for base rates to rise well above 6%. Homebuyers are steadily accepting that we are returning to a period of more normal mortgage rates rather than the ultra-low, sub 2% mortgage rates of recent years.
So how will this affect the Winchcombe property market?
Whilst nationally Zoopla reports the rise in mortgage rates has hit demand from new buyers by 18% over the last 2 months and sales have slowed, the market in Winchcombe is pretty resilient.
Despite the negative news about the current property market, we have experienced a stable, active and positive summer environment for buying and selling. We are still registering lots of new potential purchasers who are keen to buy in Winchcombe and the Cotswolds and many of these are less dependent on mortgages.
The property market is also very 'regional' with Winchcombe and the Cotswolds traditionally fairing extremely well in comparison to other areas when there is a more challenging market. As your local independent agent, celebrating 30 years in Winchcombe this year, we have unrivalled experience in all market conditions to be able to give you realistic and effective property advice.
So in summary, if you're contemplating a move, don't be put off by the media 'doom and gloom' and contact us for an honest Market Appraisal and sound advice from local property specialists at Adams.