With Spring upon us and positive news from the Monetary Policy Committee regarding inflation, it is looking to be a busy season here at Maddisons. Deborah Richards, Founder and Managing Partner of Maddisons Residential explains what the current interest rates mean for the property market and why she is feeling  optimistic for 2024.

Inflation is coming down – finally!

In March, inflation hit its lowest level since September 2021 at 3.2% which is a significant drop from the month before, so it is finally beginning to look like it’s on a good downward trajectory.

The Monetary Policy Committee has once again voted to hold the base rate at 5.25%. After a close vote last month, there was speculation that the base rate may be reduced further,  but it has been kept at the same level for the sixth consecutive month, suggesting they believe this strategy is working to control inflation.

The Governor of the Bank of England, Andrew Bailey, has explained that until inflation is closer to its target of 2%, and looks as if it will stay there, it is too soon to touch base rate.

Mortgage interest rates are reducing

Luckily for those needing a mortgage, lenders are beginning to price in a future drop and subsequently the interest rates on mortgages have come down a little, but they remain the highest they have been for several years. The reality is that those on attractive fixed rate mortgages that are soon coming to an end will find themselves facing much higher interest rates when they come to remortgage.

What does the market look like locally?

In Tunbridge Wells, we have seen great signs of a positive spring market ahead. Buyer enquiries are up and although prices are relatively flat compared to only last month, if you compare them to 12 months ago, they're looking pretty good.

The number of new instructions was looking a little flat against January 2023, but when compared to February last year, they were up 22%. March and  April to date have also been very busy months for new instructions so all the signs are pointing towards a strong spring market.

What does this mean for the property market?

Media commentary and a general feeling of optimism seems to be filtering through to the market in everything we're seeing in terms of buyer demand, prices achieved and levels of listings.

As it looks as though the base rate will come down slowly as the year progresses, with interest rates following accordingly, it is looking positive for the spring market. We are glad to see the Bank of England being cautious until inflation is hopefully under control.

We are pleased to see the spring property market picking up and there is a sense of positivity for house buyers and sellers alike. Locally, we are buoyed by the phones ringing and sellers bringing their  properties to market with the hope of finding a new home. If you are looking to downsize, upsize or are looking to move into the area please get in touch. We would love to help.