As the heartbeat of the British economy, the housing market is highly sensitive to various factors, one of which is interest rates. Recently, the United Kingdom has experienced a series of interest rate hikes, leaving homeowners, potential buyers, and real estate professionals pondering the consequences. In this blog post, we delve into the effects of these interest rate increases on the local property market in East Molesey, Claygate, and Thames Ditton, three vibrant communities within the beautiful Elmbridge area.
Understanding Interest Rate Hikes: To grasp the implications of recent interest rate hikes, it is essential to comprehend why they occur. Interest rates are influenced by the monetary policy decisions made by the Bank of England (BoE) to control inflation and maintain economic stability. When the BoE raises interest rates, it becomes more expensive to borrow money, affecting mortgages, loans, and overall market dynamics.
The Impact on Local Property Prices: Interest rate hikes can have a direct impact on property prices in Elmbridge and its surrounding areas. As the cost of borrowing increases, potential buyers may face higher mortgage repayments, leading to a decrease in affordability. This could potentially slow down the demand for properties and, in turn, influence pricing levels. However, the impact may vary depending on factors such as local market conditions, supply and demand dynamics, and the overall desirability of the area.
Effects on Buyer Behavior: In a climate of rising interest rates, prospective buyers often reassess their purchasing decisions. Affordability concerns may cause some buyers to postpone or reconsider their property search, opting for more conservative choices. On the other hand, some individuals might perceive the rate hikes as a signal of a strengthening economy and view it as an opportune time to invest in property before prices potentially rise further.
Shifting Dynamics for Homeowners: Existing homeowners within the Elmbridge area may experience a change in their financial circumstances due to interest rate hikes. For those with variable-rate mortgages, the increase in rates will lead to higher monthly mortgage repayments. Consequently, homeowners might adopt a more cautious approach, focusing on budgeting and potentially reducing spending on other areas of their lives.
The Role of Supply and Demand: The local property market in East Molesey, Claygate, and Thames Ditton is driven by a delicate balance of supply and demand. Interest rate hikes can impact this equilibrium. If demand decreases due to higher borrowing costs, the number of potential buyers might decline. Conversely, a decrease in demand could motivate sellers to reevaluate their pricing strategies, leading to more competitive offers and potentially a more balanced market.
The recent interest rate hikes in the UK have undoubtedly cast a ripple effect on the local property market in East Molesey, Claygate, and Thames Ditton. While there may be short-term adjustments in buyer behavior and property prices, it is essential to consider the broader economic context and long-term market stability. As trusted estate agents in Elmbridge, we remain dedicated to providing up-to-date insights and assisting our clients in navigating these changes effectively.
Remember, the impact of interest rate hikes on the local property market is a dynamic process, and monitoring the ongoing developments is crucial for both buyers and sellers. Stay informed, consult professionals, and make informed decisions to ensure your success in this evolving landscape.
Once again we have been trawling the land registry to gain further insight into the Molesey housing market. For many it has been a year of uncertainty and we are delighted to deliver some clarity to value and transaction trends in the Molesey area.
Hopefully you find the below statistics interesting, but if you would like to obtain an instant valuation of your own property, you can do so by clicking here:
At the time of publishing this article the last full month of completed transactions submitted by the land registry was September 2018.
Out of those 658 listings in Molesey (KT8 postcode), 49% reduced their asking price, and 43% of the total listings agreed a sale.
The number of completed transactions on record has remained in line with predictions at the begining of the year:
The average price paid has remained strong due to a lack of supply to the Molesey market, and a continued influx of buyers moving out of central and SW London.
Terraced properties have the highest transaction rate in terms of property type, which is consistent with expectations given the number of terraced homes in Molesey.
We have also calculated the transaction rate for the top 10 roads in Molesey. This is calculated as a percentage of the total properties on the road, as opposed to the total number.
If you are looking for more space and would like to upsize and sell your current property. Now is the perfect time to do so.
Could this mean that transaction levels are being unneccesarily supressed by an uncompetitive increase in asking prices in Molesey when compared to neighbouring towns?
Below is specific data collected from Land Registry archives, showing the average price paid, and the number of completed transactions for semi detached, and terraced properties in the KT8 postcode area. Each graph includes data between 1st January and 23rd October for each year so that we are able to compare to the current market with greater accuracy.
TOTAL TRANSACTIONS IN MOLESEY 2016, 17, 18 – 1st January – 23rd October.
AVERAGE PRICE PAID (£) FOR A SEMI DETACHED OR TERRACED PROPERTY IN MOLESEY
2016,17,18 – 1st January – 23rd October.
From a transactional point of view, we have seen a sharp decrease in the amount of completed transactions compared to last year, yet prices have increased by just over £3500. This is expected with a reduced supply so nothing particularly unusual there.
By reading headlines in the media, you would be lead to believe the property market is in a terrible state, and Mark Carney, Governor of the Bank of England has claimed a potential value drop of up to 35%! We of course completely disagree with this estimation. To try and bring things back to reality we have compared this data with the period before and after the GLOBAL recession in 2008.
TOTAL TRANSACTIONS IN MOLESEY 2007, 8, 9 – 1st January – 23rd October.
AVERAGE PRICE PAID (£) FOR A SEMI DETACHED OR TERRACED PROPERTY IN MOLESEY
2007,8,9 – 1st January – 23rd October.
Aside from the fact that property values in Molesey have on average increased by 48% since 2009, we can see that already, transaction levels are lower right now than they were in 2008/09. Average prices for semi detached and terraced properties in Molesey decreased by 22% (approx. £84,000), given the banks were in crisis mode and the whole world was experiencing a financial meltdown, this is not difficult to understand.
This is just our own opinion, but we cannot find any reasonable prediction that would conclude the value of property in the UK will be worse affected due to Brexit. The cost of borrowing is still at an exceptionally low level, so the demand is there but the affordabilty has hit its current ceiling, especially with the change in stamp duty bandings that has slowed movement at the upper end of the market.
Surrey's property market and consistently high performance in terms of transactions and value, is largely due to the ever increasing migration from buyers moving out of South West London. Whenever we are looking for insight into the local market in Molesey, we look at what is happening in driver towns in SW. For this example, we have used Clapham (SW4) as a comparable, to show how it stacks up against local areas, with Molesey of course being our main focus.
We caught up with the new owners who took over the cafe in March, they are extremely welcoming and have quickly become huge fans of the Molesey community.
We serve many kinds of cakes, such as Victoria sandwich, Apple pie with ice cream on top, Non gluten Carrot cake, Non gluten brownie, Forest fruit cake, homemade fruitloaf and many others, we bake our croissants and pain au chocolate daily, we have freshly made sandwiches, paninis, wraps with a big variety of fillings,we do all kinds of breakfast as well.
My favourite is the Chiken pesto panini.
Lovely supportive people around.
I would definitely advise Lamb Moussaka from our chef.
Most of all I like the smell of fresh roasted coffee in the morning during prep, it is a real sign that the day is starting and it is a great way to start every day!
English breakfast which includes two eggs, crispy bacon, sausages, beans, tomatoes, mushrooms, two slice of toast for only £6 + tea comes free.
The Courtyard Cafe are extremely welcoming to pets and children, it's the perfect place to pitch up after nursery, school, or dog walking!
You can find them at 105 Walton Road, East Molesey, Surrey, KT8 0DR.
Yes that is a chrome guitar, and yes the only other time you may have seen one like it was on the cover of Brothers In Arms by Dire Straits!
The shop has an extremely welcoming feel, and you are instantly greeted by some amazing instruments (and musicians).
The workbench where James repairs and maintains instruments.
As soon as you enter the shop your are welcomed by the relaxed and unpolished vibe that is clearly perfect for the creative nature of teaching and experimenting with music. There is an array of stringed instruments that line the walls, along with amplifiers, straps, leads and retro festival posters amongst other things. The entire building is charming, even down to the work bench where James repairs and maintains their customer's instruments.
One of the teaching rooms at Musicland East, just look at those posters! How could you not be inspired!
Thats right. Thats a guitar made around a motor oil can. They are even cooler in real life!
Whilst there is a clear emphasis on the technical and theoretical side of music, the teaching/ practise rooms continue the relaxed vibes within the shop, and the staff have a superb knowledge of their respective crafts. This makes for a perfect, pressure free learning environment for any aspiring musicians, whether it be guitar, piano, or drums, this has to be one of the most charming and inspirational places to learn.
We asked James a few questions whilst we were there, we hope you enjoy reading what he had to say, and we've included contact details at the end of this article in case you want to start (or continue!) a passion for music at Musicland East.
How long has Musicland East been in Molesey for?
Since 1996, so about 22 years on the corner of Matham Road and Walton Road.
What services and products do you offer?
We do a lot of teaching here, with guitar, bass, drums, piano and ukelele lessons going seven days a week, out of four teaching rooms. We also stock new and second hand instruments and accessories, and I carry out repairs and setups on string instruments on site as well.
What is it that you like about working in Molesey and the general community?
The people are cool and really get behind stuff. There's quite a few open mic nights in the area and we've had a massive response to our larger Musicland Live events, which give our students the opportunity to get together into bands and have them perform on a proper stage and gain some experience. Its' a great evening and we always sell hundreds of tickets, and it can only grow off the back of the community that supports it. Luckily, Molesey has a great one!
What's your top tip for someone looking to get into music/learning an instrument?
Get a reasonable instrument but don't break the bank yet, make sure it's set up and tuned correctly, and play everyday for the love of it so you advance naturally. My main instrument is the guitar and there's such a range of approaches and styles you can play in and so much advice out there, but play the music you love to hear and you'll be on the right track.
What is your favourite thing about your job?
We get a real opportunity to make a difference. The shop meant a lot to me growing up, and I can see it means a lot to some of our younger students now. The community atmosphere gives way to the tendency to dream big, and it's great to have a shop full of musicians and those who support them, seven days a week, in a community that lets it thrive.
52-54 Walton Road, East Molesey, Surrey, KT8 0DL
0208 979 9443
For those that live locally, you have hopefully noticed the increasing number of our "for sale" and "to let" boards going up over the last two years and more importantly, the high proportion that are being changed to "sold" and "let by". With a business model that focuses on proactivity in selling and letting property, by encouraging a "pick up the phone and sell" culture within our sales and lettings teams, we have experienced exponential growth in East and West Molesey, Claygate, Hinchley Wood, Esher and Walton On Thames, and are proud to report that our list of happy sellers and landlords keeps on growing!
Here is our latest video advert highlighting some of the statistics taken from the past year:
Many experts predict either a slow in growth or in some cases (particularly in South West & Central London), a drop in property values. Surrey has always been resilient in turbulent property markets and we fully expect this trend to continue.
As we focus on the South West London buyer that is looking to increase space in search of better value for money than what is offered by the London market, and looking to settle their family here and secure a place in one of Surrey's renowned primary and/or secondary schools, we have noticed that areas such as East Molesey, Hinchley Wood, Claygate, Walton On Thames, Hersham and Esher are still increasing in popularity thus creating a temporary boom within the local market, allowing sellers to hold firm on asking prices and achieve the result they are looking for.
There will inevitably be periods of uncertainty as we progress towards our exit from the EU. This will require some additonal proactivity from estate agents to secure fewer proceedable buyers, but we see no evidence of property values in the local area decreasing, however the chances of property values moving upward are very low.
This is still very good news for those looking to upsize and we would recommend that anyone looking to move this year do so sooner rather than later whilst activity and interest from buyers remains high.
If you are considering moving this year and would like an up to date valuation of your property, please call 0208 396 6717 or complete our valuation request form and a member of our team will contact you to arrange a free, no obligation appointment.
Over the past few years, interest in Molesey as an area for families moving out of London has increased significantly. Mainly driven by price, areas such as Molesey also offer great schools and a more "family paced" lifestyle.
This is why we work incredibly hard to draw in the attention of these better budget buyers, many of whom have not considered Molesey as an area but are looking in surrounding towns such as Hampton, Thames Ditton, and Esher. Needless to say, they are soon converted to the idea of living in Molesey and as many you know, once you move into Molesey, you tend to stay forever!
So with all of the positives that and area such as East Molesey has to offer, and with recent events such as the change in stamp duty bandings, and the EU refurendum, London is going through a period of uncertainty, but people are still keen to buy. Combine this with a shortage of homes coming to market and you have a recipe for a quick sale at a great price.
There are many reasons why your pipes can freeze during winter months:
In very cold weather, you'll need to leave your heating on a low setting (or set it to come on a couple of times a day), especially if you're going on holiday for longer than a day or two.
We hope that you have found the above useful, should you require the services of our property management team we are always on hand to help – 0208 396 6717 – email@example.com
Hampton Court Palace security staff were called to close a fire exit that had mysteriously opened near the Introductory Exhibition. On this occasion CCTV footage showed the doors swinging open with tremendous force with no visual explanation as to why.
The second time this happened a ghostly figure appeared after the doors swung open to close them.
On the third occasion the doors opened the ghostly doorman was no-where to be seen.
In addition, a visitor the the palace wrote in the visitors book that she had seen a ghost in that area. This story gained a lot of media attention on a global scale.
Also known as the screaming lady, Catharine Howard is believed to roam the haunted gallery and has been spotted walking accross the room screaming before disappearing through the walls.
First spotted as early as 1829 after her remains were unsettled during the reconstruction of the church, Dame Sybil Penn served four Tudor monarchs. Her ghost is also known as The Grey Lady of Hampton Court Palace.
Is your house suffering from ghostly goings on? Maybe it's time to move! Request a valuation.
Molesey residents will no doubt know The Buttonhole Florist on Bridge Road in East Molesey, we were fortunate enough to meet owner and long term Molesey resident Denise Hamer and her dog Elsa!
The Buttonhole was opened in 1947 by Mrs Maisie Pilgrim, and has always been a family run business. Her son took over when Maisie retired and I have owned the shop for 5 years having worked for the Pilgrims for 25 years.
We have a wide selection of fresh flowers and plants which are delivered straight from Holland to cover all occasions.
I have lived in Molesey nearly all my life and is a wonderful place to live and work with so much to offer and the people in Molesey are so friendly with a real feel of village community spirit about it.
Do you have a special occasion coming up? Visit Denise and Elsa at The Buttonhole Florist!
117 Bridge Road, East Molesey, Surrey, KT8 9HT
Tel: 0208 979 3694 / 0208 979 9793 Email: firstname.lastname@example.org
Want to feature your local business in Molesey? It's completely free to do so!
Call 0208 396 6717 or email email@example.com