Prime property in Hertfordshire and the Home Counties is still buzzing with activity. Savvy buyers are seizing the chance to secure good-value family and executive homes, as well as small estates, before anticipated interest rate cuts drive prices up. This autumn, we’ve seen a refreshing return to competitive buying, with motivated buyers ready to commit to their ideal property.
Adding to the mix, the Chancellor announced this week a hike in the stamp duty rate for second homes, introducing an additional 5% on top of the base rate. The good news for homeowners is that taxes on primary residences remain untouched, keeping your home one of the best long-term investments for capital growth. Meanwhile, the government’s pledge to build 1.5 million new homes within this Parliament could eventually shake up the rental market, making private and public rental options more widely available.
We know that the upcoming £40 billion in tax rises may sound concerning for household budgets, but with minimal changes to personal taxation, the immediate impact on the property market should be subtle. If inflation stays low, there’s every chance we’ll see continued reductions in interest rates. For now, we’re watching to see how the Chancellor’s announcements will impact swap rates and, in turn, the Bank of England’s base rate.
The UK property market has proven resilient time and again, showing an impressive ability to adapt to fiscal and political shifts. As we look towards the Bank’s next Monetary Policy Committee meeting on 7th November, there’s cautious optimism that a base rate reduction may be on the way. In the meantime, buyers and renters alike can feel confident in the strength and stability of the market, with growth likely to continue steadily across both sales and rentals.
Whether you're looking to buy, sell, or simply explore your options, now is the perfect time to reach out. Our teams at Ashtons are here with expert advice tailored to your needs, so contact us today to make the most of the opportunities ahead. Get in touch.