According to the astrology calendar that is.. not the weather!
So, will a new Government led by Sir Keir Starmer lead to renewed interest in the property world?
Short answer, one would hope so, however there are a few other factors to consider:
- Interest rates
- Supply
- Economy
We feel that these are the key factors, amongst the many, that might influence the UK property market.
Interest rates
With inflation having finally come down to Rishi’s target of 2% and seemingly holding level the question is – are the Bank of England finally going to start reducing interest rates? Indications are yes; but as we have seen and heard recently, they are in no hurry to do so, although pundits are saying that a late summer reduction might be on the cards. This could be the psychological catalyst for many to start looking at potentially moving home. However, we are hearing that lenders are already starting to reduce fixed rate mortgage deals (albeit small) so it could be promising times for the late summer/ autumn market.
Supply
Even though we might be seeing a return of market activity and recovery there sadly has not been and still has not seen enough new homes coming to the market since the end of the pandemic. RICS and other leading professional bodies have indicated that we are circa 33% down on new listings. So will the interest rates drop spark more homes coming to the marketplace, one would hope so, as they say, ‘every action has a reaction.’
Economy
Energy bills are looking a little more palatable so with overall monthly costs on a downward trend for most homes it bodes well. It is hard to fully predict given that we are in Summer and external factors change this over the autumn and winter months. That said employment figures are looking healthy, and the UK is arguably in a better situation than it was 16 months ago post the Liz Truss campaign.
This is a very brief, skimming the service, outlook but its positive and albeit we are in the honeymoon period of a new Labour Government; Britain needed and wanted a change and the initial signs from the three factors point towards a more positive outlook… in the short term.
