Second Drop of Base Rate Encourages Increasing Property Market Activity
Ever since the Bank of England (BoE) dropped the base rate for the first time in 18 months in August, we’ve seen increased activity in the Edinburgh prime property market. Prospective buyers have found it easier to secure competitive mortgage deals, which has grown overall buyer confidence. We’ve also seen more interest from prime property owners considering selling their period property now or in the future.
In November, the BoE’s Monetary Policy Committee (MPC) met market expectations and lowered the base rate once more, bringing it to 4.75%. The initial drop in August was followed by a flurry of lenders launching more competitive deals. November’s drop is unlikely to have the same effect. However, this second drop confirms the Bank’s confidence in the economy and continuously low levels of inflation.
With stability returning to the property market as a whole, period properties will benefit from greater levels of confidence. Recent analyses show that detached homes performed strongest when looking at house price growth in the year to August 2024, with prices rising by more than 11% compared to an overall increase of 6.5%.
This strong performance, combined with Labour’s budget statement (more below) and slowing inflation has led experts to forecast continued growth and price increases for the coming year.
Has Mortgage Availability Changed?
Mortgage availability changed dramatically in August and September, leaving prospective buyers with greater choice and more competitive rates than we had seen for over a year.
While we’re not expecting dramatic developments over the next few weeks, it’s safe to say that mortgage availability remains high across many market segments. Deals are not only available from high-street lenders but there is also greater choice for self-employed borrowers and others considering specialist lenders.
How is Edinburgh’s Prime Property Market Responding?
Property market activity has increased steadily over the past few months, and we’re seeing a very strong autumn. Traditionally, the shorter days have caused property viewings and sales to slow down. However, high-quality properties like Edinburgh period homes have always outperformed the market average.
This year, we’ve found that buyer interest continues to be strong. To take advantage of these developments, we recommend taking the time and staging your period property to showcase its splendour even on darker afternoons or on a rainy day. A little extra effort can make a big difference when it comes to securing a successful sale.
How Has the October Budget Influenced Property Sales in Edinburgh?
Chancellor Rachel Reeves’ first budget statement largely met expert predictions with the announcement of tax increases and high levels of spending. To date, there has been no measurable influence on the activity we’ve seen in Edinburgh’s prime property market.
The Chancellor did announce an increase in Capital Gains Tax on second homes. However, this part of the budget doesn’t affect Scotland as the additional dwelling supplement (ADS) applies here. This charge has been steady at 6% for several years now, and we’re not expecting a big change here. The Scottish Government will announce its budget in early December.
What to do if You’re Considering Selling a Period Property
Autumn and winter have a reputation for being less-than-ideal months for selling a property. Still, there are a few reasons why you may want to consider giving us a call now.
First, it’s always a good time to get more information and have all the facts at your fingertips. We’re happy to meet you for a cup of tea and an informal chat about how we can help you sell your property successfully now, in the spring or in a year.
Second, you may be surprised by how many prospective buyers are looking for an Edinburgh period property right now. With a tailored approach and targeted marketing, there is no such thing as a bad time to list your period home.
For more information, to discuss your period property or if you’re looking for your next home in Edinburgh, don’t hesitate to get in touch with us. You can contact our Director, Fiona Vernon on 0131 699 0333 / 07900 605674 or email [email protected].
