Rates Held Again

So, the Bank of England has decided to keep interest rates at 3.75% for the fifth time in a row. With everything going on in the world — conflicts abroad, rising energy costs and yet more drama down in Westminster — we’re shocked. Shocked, we tell you.

Except we’re not, really. A hold is exactly what most people expected, and that’s the point. So rather than let another rate announcement disappear into the news cycle and goodness grief there is so much news around, we’ve unpicked what it could be affecting — and, more importantly, what it means for your position, whether you’re thinking about selling or buying.

1. The economy

Let’s start with the big picture, minus the jargon. The UK economy right now is best described as steady. Not racing ahead, not falling over… steady. The way you hope to be after a vino or two… Inflation is sitting at around 2.8%, close enough to the Bank’s target that it isn’t panicking, even if it’s still a bit warmer than anyone would like. Unemployment is hovering just under 5%, and the economy grew modestly over the spring. Manufacturing even nudged up a touch.
None of that is fireworks. “Steady” matters more than it sounds. A calm economy means the market isn’t being spooked, and a market that isn’t spooked is one where sensible buyers and sellers can get on and make decisions. That’s where we are at.

2. Mortgages

Here’s the short, honest version. A held base rate means the wild swings we all got used to a couple of years ago have largely settled down. Average five-year fixed deals are sitting somewhere in the region of 5.5% – not the bargain-basement rates of the past that usually start with a 1 in the title, but far steadier and more predictable than the rollercoaster of recent memory.

The takeaway? Buyers can plan again. When you know roughly what your monthly payment will look like, you can actually commit, and that’s good news for anyone with a home to sell.

3. Investments and pensions

If you’ve glanced at your pension or savings lately, you’ll have noticed markets have been getting on with things too. The bigger worries out there are global, energy prices and overseas tensions rather than anything happening on our own doorstep. That’s not a negative for the housing market; if anything, when other assets feel a bit uncertain, bricks and mortar tends to look reassuringly solid. People still trust a home.

4. The school holidays

Now, the summer holidays are always a strange one for home sales. The received wisdom is that everyone jets off and the market goes quiet. But this year, with the weather being as good as it has been, plenty of families are staying put, “stay-cationing” close by, and a fair few of them are using the time to think about their next move.

So don’t assume nothing’s happening. Far from it. If you’re looking to sell or buy, a summer that everyone else writes off can quietly work in your favour, because there’s less competition and the people who are looking are serious.

5. The housing market

Which brings us home to Chester. Over the past year, the average property here has sold for around £300,000, and prices are up roughly 2% on the year. In plain terms: values are holding firm and edging up, not sliding. Stability is exactly what gives both buyers and sellers the confidence to act.

Here’s the bit that really matters, though. Supply is tight. There simply aren’t many homes on the market, which means we have plenty of buyers on our books right now who are waiting — genuinely waiting — for a call or an email to tell them something new has come up. Despite the school holidays, it is not all dead out there. Not even close.

So what does it all come down to?

If you’re looking to buy, this is a moment where homes you might not usually see could come onto the market, it pays to be in the loop. And if you’re thinking of selling, you’re in a strong position: steady rates, firm prices and a queue of buyers with few properties to choose from.

The thing that ties it all together is having the right agent in your corner. We’ve got a list of buyers ready and waiting, so if you’re considering selling, make yours count. Pick up the phone or drop us an email, and we’ll talk you through your options and, get you in front of the people already looking for a home just like yours.