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.
Example by Maddie age 6, from Claygate.
Want to be in with a chance of winning a brand new Nintendo Switch? All that you have to do is draw us a picture of your dream home. Now this could be a home in outer space, this could be a medieval castle, this could even be a Minecraft house!
Once you’ve drawn your picture get your parent or guardian to like or follow us on Facebook or Instagram, and they can either take a picture of your picture and email it in to us, or alternatively they can drop it into one of our branches in East Molesey or Claygate.
Entries will be displayed on our screens in branch and 5 finalists will be posted to social media, the finalist with the most likes will be announced as the winner and will receive a brand new nintendo switch console!
A well thought out ground floor layout includes an entrance hall, a study/playroom, utility room, modern shower room, a good size living room and a beautiful open plan kitchen/dining/family room, finished to a high standard with doors to the landscaped garden.
First floor accommodation delivers four well-proportioned bedrooms, and a desirable family bathroom which includes a bath and a separate shower.
Outside the property there is the large rear garden which is Southerly facing and to the front is a paved driveway offering parking for 2 cars.
Viewings are highly recommended to appreciate the size, setting and quality of finish available with this family home. Call Newton Huxley Estate Agents today to book your appointment to view.
For many homeowners waiting for the right time to move, it has been a difficult decision to make for the past few years. The property market in the UK has been subject to an onslaught of market slowing events with what feels like endless elections, the EU referendum, changes to stamp duty land tax, and then this year to top it all off, the world was pretty much shut down by a coronavirus pandemic from COVID-19.
As soon as the property market was put on pause, the headlines wrote themselves, and the media reported that the property market apocalypse was approaching… but it never arrived.
Then, as the property market opened again, we were warned about how tough it was going to be to sell our properties, so was this prediction right?
Let’s take a look at what the data tells us…
The below graph is taken from Rightmove data for the KT7, KT8 and KT10 postcodes which covers Thames Ditton, East and West Molesey, Hinchley Wood, Claygate and Esher (where Newton Huxley sell the most properties).
The local property market was showing very positive signs at the beginning of the year throughout January and into February, with the number of New Listings and Sales Agreed at healthy levels as you would expect to see. Then things began to turn in March as COVID-19 became the focus of everyone’s attention, and finally in April the market stopped almost entirely as viewings and mortgage applications were no longer possible.
In May, we can see the tide beginning to turn with urgent moves progressing and then in June we can finally begin to see what the property market looks like post lockdown… and so far it looks very good!
New property listings are quickly returning to pre-covid levels and as these properties attract the wave of new buyers from Central and South West London, we expect the number of sales agreed to catch up in July.
Our own internal data also shows positive signs for the local property market, with the number of offers received in June being at its highest level since October 2017.
This next graph shows the number of new buyers registering (people calling to ask us to help with their search for a property,) viewings booked, and the number of individual offers received on our listed properties.
Whilst it is too early to know for sure what the long-term impacts of COVID-19 will be on the property market, property transactions in the South East have been stunted since Stamp Duty Land Tax was changed in 2016 (by as much as 30% in our local area), and a bottleneck of buyers waiting for the right time to make their move has been building ever since.
Now interest rates are lower than ever before, and we’ve experienced a genuine public health issue that has had an impact on every single person one way or another. For many this has put things into perspective, and has served as a catalyst to further increase buyer migration out of Central and South West London, with some 51% of buyers that already live in the capital looking to move out.
With so many properties coming to market right now, and with lenders tightening criteria for mortgages, it is unlikely your property value will be shooting up any time soon. Many market reports are suggesting a 0% change in property values this year, and a modest 2% next year. So, if you have been waiting for the right time to move over the last few years like so many others in the KT7, KT8 and KT10 postcode areas, now is the closest you are going to get to the perfect time to finally get moving!
We are proud to announce that we have started 2020 the best way we could have imagined, with the acquisition of one of the longest standing and locally renowned businesses in Claygate Village. The team at Catling & Co, along with an extensive portfolio of managed rental properties is a welcomed addition to our business, and we look forward to building upon their local reputation and the service they have provided to the Claygate community over the last 25 years.
Although we will be converting the high street office at 15 The Parade, Claygate, KT10 0PD into a Newton Huxley branch at the begining of February 2020, the Catling team will remain in this branch and we welcome their continued support in maintaining the proactive, professional and approachable reputation that Newton Huxley has built since our launch in 2015.
John Catling, who will remain as a consultant for a period of time during the transition has released an open letter to clients past and present:
As Catling & Company enters its 26th year of trading, it is with a heavy heart that I have finally made the decision to spend more time with my family and retire.
I have taken careful consideration to ensure that my loyal clients remain in good hands, and at the end of 2019 I officially handed over the reins to Len Taylor & Sam Kamali at Newton Huxley, who are another local, bespoke agency just like Catling & Co. I have no doubt in my mind that Newton Huxley, together with my team at Catling can at the very least maintain the standards we have upheld over the last 25 years, and will work to improve upon them.
Sarah Wren and the rest of the existing Catling & Company team will remain indefinetely, I will also be retained as a consultant to assist with the transition for a period of time.
I would like to thank you for your continued loyalty and custom and very much look forward to the next chapter.
One of the Managing Directors at Newton Huxley, and local Claygate resident Len Taylor had this to say about the recent aqcuisition of Catling & Co:
We are delighted and feel priveleged to have been given this opportunity to work for the clients that John and his team have taken such good care of over the years.
As a Claygate resident myself I feel very fortunate that we have such an active community and have experienced first hand the positive impact this has on local residents, and I hope we will be able to contribute for many years to come.
As estate agents we also know that this is part of what makes the area a number one choice for young families moving from South West London which is why we opened here in the first place. I hope that we can rely upon the support of the local Claygate community, and in return we will continue to provide a reliable, trustworthy service that we are immensely proud of.
The team at Newton Huxley are already experiencing increased interest in our available properties both for sale and to let for January. 2020 is widely anticipated to be a positive year for the housing market, and we invite you to pop into the newly refurbished branch from 1st February should you wish to discuss the local market or any property plans you may have.
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!
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.
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.
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.
Are you considering selling or letting in Esher, Claygate or Hinchley Wood this spring? Our new KT10 branch is here to help!
Since Newton Huxley first opened its doors in East Molesey in January 2015, our model of "off the high street" estate agency has proven an effective one, leading us to become the areas most recommended estate agent in KT8 on Google. We now plan to achieve the same with our new KT10 office and would like to invite those looking to sell or let, to try our highly recommended sales and lettings services at a discounted rate, with potential savings for sellers of over £6000 and 30% off letting fees for a limited time only.
Our innovative marketing strategies, proactive culture and friendly staff all come together to give you the best experience whilst achieving the best possible result for your sale or let.
If you would like to arrange a FREE sales or lettings valuation of your property, please contact our KT10 office on 01372 631 622 or email firstname.lastname@example.org.
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.