How the base rate reduction could impact the property market
The Bank of England recently dropped its base interest rate from 5.25% to 5% – the first drop since 2020 – and the property market is buzzing. For homeowners in Worthing, Brighton, Lancing, Shoreham-by-Sea, and Findon, this could be fantastic news. Let’s break down what it means for you.
Lower interest rates, higher demand
A drop in the base rate often translates to more affordable mortgages. We saw this with many of the mainstream lenders beginning to slash their rates prior to the Bank of England meeting on 1st August, in anticipation of a drop. This means more potential buyers can enter the market, and buyers affordability increases, which is great news if you’re planning to sell your home. Increased competition among buyers can lead to securing an offer faster.
As Jacobs Steel’s Managing Director, Matt Jacobs, recently reported,
“We’re still transitioning off of what was a crazy market in the height of 2021 and 2022 and naturally the market needs to recover when interest rates go up as quickly as they did. It takes time for the market to adjust and people to feel comfortable buying and selling again. There are some real benefits of selling and buying in this market; it’s not as pressured as it was, which then also means that when someone makes an offer they feel more confident about what they’re buying.”
It’s likely that more buyers will now come out of the woodwork, and many of those buyers will have properties to sell also. Whilst we don’t expect to go back to the type of market in 2021/22, the second half of this year is already proving to be more buoyant and, with the base rate drop, there is already a lot more confidence in the local property market.
Maximise your property's potential
Matt says,
“We’re in a buyer’s market. It’s kind of gone back to how it always used to be, and that works well for a lot of people that are out there either looking to buy or sell. The hardest part in this market is that sellers still expect to almost achieve the top top price, and buyers are out there thinking they can get a bit of a deal. So our job is to be honest with everyone throughout that process to try and manage expectations on both sides.”
Whilst it’s important to price your home in line with the market, which is what we help our sellers do through the use of comparable evidence and experience, there are a few things you can do to improve the appeal and overall perceived value of your home.
Statistics can get a bit dry, but here’s a juicy one for you: a whopping 68% of homebuyers prioritise kerb appeal when searching for their dream home according to the HomeOwners Alliance survey. And potential buyers make up their minds within the first minute of seeing your house. Talk about pressure! Check out this blog to see what you can do to enhance your home’s kerb appeal
Other ways to maximise your property’s potential include:
Depersonalise & Declutter
Many buyers really struggle to picture themselves in someone else’s home, especially when there are a lot of personal items everywhere. Take this opportunity to have a good sort out and declutter; not only to make your home more saleable, but you’ll thank yourself later when you’re packing boxes!
Get small maintenance tasks done
Make sure you fix any obvious maintenance issues, like leaky taps or chipped paint. You don’t have to spend mega money, just tidy things up a little bit to improve presentation.
Keep it clean
We understand the stress that comes with both living in your home and opening it up to viewers. If, like most, you would usually do a weekly clean, try to clean as you go each day. This will decrease the amount of stress on you when you get viewings booked in to clean and tidy quickly, and will also create a good first impression for potential buyers.
