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.

Conclusion:

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.

Our sales team did a fantastic job selling this property that had been marketed by 2 other agents over the last 13 months.

Within 6 weeks of them coming to market with Newton Huxley we had a buyer in place and have just exchanged contracts with the proud new owners of this stunning Edwardian property.

If you're looking to sell in Claygate my team can help, book a valuation here: https://lnkd.in/dtVWQds

You may be thinking of moving, or more likely, you are just interested to know if the value of your property has gone up or down. It can be really difficult to guage what is happening with property values, some estate agents are always talking up the market, and the media is generally extremely negative and apocalyptic about the housing market around Surrey and London.

Let us cut out the rhetoric and the "sales spiel" and get down to some undeniable cold hard facts!

Transaction Levels

For most of us, it feels like 2008 was only yesterday, the recession hit and transaction levels went through the floor. As an example, the KT10 postcode area (Esher, Claygate, Hinchley Wood) dropped from over 400 annual transactions to just 184. Since then transactions have increased until the most recent peak in 2013 of 446 total transactions. There has been a steady decline in the number of transactions since then, and in 2017 the Land Registry recorded 354 transactions across Esher, Claygate and Hinchley Wood. The level of transactions has declined by 21% since the most recent peak in 2013, but has increased by 4% over the last year. Hardly a disaster story and by contrast to 2008 levels, a very healthy market place indeed.

A similar story applies to areas like Molesey and Thames Ditton, with transaction levels down 21% over a similar period, and still way above 2008 levels.There really is no comparison to the 2008 recession that has been quoted by some of the more dramatic media sources. To sum up, we are not at the "height" of a market trend but we predict prices to remain where they are for the next 2-3 years with modest fluctuations of around 5% +/- throughout this period.

Property Values

So you know transaction levels are still high, just not as high as they’ve been before, and we know what we're all really interested in… The value of property!

Last year property values across Molesey, Esher, Claygate, Hinchley Wood and Thames Ditton slipped slightly, with the lower end of the market dipping around 5% and the £1m + market dipping by 7% or more. This was purely down to affordability issues and scepticism from would be buyers. As a company, we experienced a market where buyers wanted to buy with interest rates at an all-time low, but sellers were still hoping for record breaking prices creating a gap that either the seller, or the buyer needed to fill. As the consumer dictates the price of a product by demand, this quickly formed a "buyers’ market" mentality, but once asking prices were adjusted, there were plenty of buyers for every property as they jumped at the chance to secure a reasonably priced home.

Since the beginning of 2018, house values have increased across all of the areas we cover: KT10 by 5%, KT8 by 3.14% and KT7 by 5.43%, this shows that the adjustment in asking prices last year from the majority of sellers created more competition from buyers and therefore, persuaded buyers to part with (or borrow) more cash to purchase their next home.

What we are still seeing is an extremely price sensitive marketplace, overestimating your property's value or listing with an agent purely because they provided you with a surprisingly high and intoxicating valuation, can cost you in the long run. Where properties remain on the market for longer than expected, buyers will assume you are desperate to sell and we have in extreme cases, received offers 15% below asking price. This will hinder your chances of getting market value and will make it nearly impossible for your agent to negotiate the best possible price for your property. Correct asking price = hordes of buyers = multiple offers = best price AND best position to proceed.

If you are thinking of selling, look at the sold history in your area on either Rightmove, Zoopla or Land Registry, asking prices are not always, what a property will sell for. Check how long a property has been on the market for, ask yourself why it hasn't sold if it has been on the market for months. Get multiple valuations from agents who have a good record of accomplishment in your area, listen to the facts and evidence rather than just listening to what you hope to hear. In an age where "fake news" has penetrated the majority of information sources, only the facts and evidence that you can verify matter, and that is all a buyer will consider – unless they fall in love with your property and have to submit a sealed bid because there are multiple interested parties! They are more likely to consult their mortgage broker than sold data at that stage!

If you are thinking of selling, would like clear advice on the value of your home and the best marketing strategy to adopt when and if you decide to sell, please call our sales team on either 0208 396 6717 or 01372 631 622 for more information. Alternatively, you can book a FREE valuation by clicking the link below.

BOOK A VALUATION

With the support of Righmove.co.uk, the BEAG carried out analysis of some 1 million property listings, 3 million transactions, 50 million leads, 3 billion property views and conducted 30,000 mystery shops.

Only the top 20% of estate agents in the country have been featured in the guide, and not only are Newton Huxley the only estate agent in Molesey to feature in the Sales category, we have received exceptional status, placing us within the top 5% of estate agents in the UK.

So when it comes to choosing which estate agent should be appointed to sell your property, you can rest assured that you will get nothing but the very best from those featured in the Best Estate Agent Guide.

To find out more or to search the featured agents in your area please visit: www.bestestateagentguide.co.uk.

If you live in Molesey, Esher, Claygate, Thames Ditton or Hinchley Wood – you've already found your local exceptionally rated estate agent!

Call us now on 020 8396 6717 for more information about your local market or to arrange a free valuation of your home.

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.

We were very happy when we were invited to sponsor The Orchard Derby at the Conservative Club on Walton Road, after sponsoring the school's Christmas Fair last year with a fantastic response from local parents of children at the school, we couldn't wait to help out again!

The evening consisted of lots of laughter, alcohol and food which for us is a winner every time! Especially when it helps to raise funds for the school.

We look forward to the next event and hope our close working relationship with The Orchard School will continue to grow.

As always, thanks to the parents and local commutinty for their continued support. We have heard from many residents that our service is a "breath of fresh air" which let's us know we're on the right track in achieving what we set out to do in opening a local, online and full service estate agent in Molesey.

We are constantly in need of additional stock to let to our register of tenants and we expect the new year to inspire many tenants to move home as per usual. Properties in; East and West Molesey, Esher, Thames Ditton, Walton On Thames, Hersham and Surbiton are of particular interest although all areas are eligible for the following offer.

We are offering to secure a tenant for your property within 2 weeks of marketing, and in the unlikely event that we are unable to do so we will reduce our letting fee by 50%.

Instructions to market your property must be received by the 14th January 2016. For more information, please feel free to contact me directly on 07885 206 at len@newtonhuxley.co.uk or via the office contact information above.

Terms and Conditions apply – available upon request.

So why are buyers queuing up to see properties in East and West Molesey? Truthfuly, no-one really knows as there are many factors to consider; the general election, mortgage rates, budget cuts and so on.

Property markets have "boomed" after general elections in the past, and there have been a long list of additional factors that prevented this from happeneing earlier in the year. Our opinion is that buyers that would have made their purchase in the summer delayed their move, causing a bottleneck effect as they begin to start up their search in the East and West Molesey areas for the final quarter of the year.

Does this mean that the winter period will be unusually busy as well? Only time will tell. All we have to go by is that every season this year has acted out of character from what we are used to, our bet is on a strong market in Molesey right up until Christmas, but of course this is our totally bias opinion!

If you are planning a move, our property valuations and market appraisals are offered free of charge. Why not find out the value of your home so that you can make an informed decision on whether or not now is the right time to move!

T: 0208 396 6717

E: info@newtonhuxley.co.uk

Request a valuation, click the box below!

This is great news right? Absolutely! But it is highly advised to proceed with caution.

It is vital you instruct an agent who understands what lies ahead and has the necessary measures in place to see you through to the finish line. With the increase in sales activity the legal process is not likely to be in a position to keep up. With the land registry preparing to take over the property search process, local authorities are refusing to invest in the technology and resources required to improve the current system and as staff are leaving not a lot seems to be going ahead in terms of replacing them.

The predictions are this will be an ongoing obstacle home movers could be looking at dealing with for the next 10 years.

It is because of this that our team at Newton Huxley deal with recommended and approved solicitors, take extra care when agreeing sales, and stay on top of the progression as this is the most vital part of the process that needs an agent to deliver and work effectively.

The average national fall through rate for 2015 is reported to be as high as 27.5% to date, to find out more about how we operate differently from other agents, achieving a fall through rate of just 12.5%, please contact us on 0208 396 6717 or click this link to go to our valuation page and book your appointment today.

We are about to enter a sellers’ market, Halifax has put the average house price at £200,280, 3.3% higher than three months ago and up 9.6% from 12 months ago.

Martin Ellis, Halifax economist has said that the shortage of new properties coming onto the market has been a major factor in house price growth this year.

In a recent report from RICS (Royal Institute of Chartered Surveyors) confirms that the average number of properties on the market per estate agency is at a record low since 1978.

RICS said that both house prices and rents are likely to grow at a rate exceeding growth in wages.

Corporate Estate Agency LSL have also reported a 15% increase in sales last month. Signifying the start of the anticipated post-election boom.