H I V E A N D PA R T N E R S | P R O P E R T Y
How does the rising Bank of England Base Rate affect your property? We asked James Farge, Managing Director of estate agency HIVE and Partners, to share his property market insight on a topic that is on the minds of many movers and property owners. Why are the Bank of England putting up
have a knock-on effect, with some buyers
interest rates so fast?
reducing their purchasing expectations, and
With the aim of curbing spiralling inflation, the
some deciding it is too expensive to buy and
marketing your agent produces is your shop
Bank of England has raised ‘Base Rate’ for the
pausing their search. The current narrative
window to sell your property to the widest
for the fifth consecutive time, from 0.1% in
is that property prices are high, and lower
audience. When you instruct an agent, you
January to 1.25% today. There are several
price borrowing is becoming harder to
should ensure that you have a complete
key factors influencing the UK’s high inflation,
obtain. This situation is likely to make more
marketing package that will attract a range
including Brexit, the Pandemic, the war in
buyers more cautious over time.
of buyers. Here are some top tips.
substantial impact is the economic medication
Is it all doom and gloom? When is a good
Ask potential agents to show you:
provided by the Government during the
time to sell?
pandemic, schemes such as furlough, CBILS
We are always honest with our customers
1. Examples of their high-quality, bespoke
(Coronavirus Business Interruption Loan
and it’s our belief that the property market
brochures that will best showcase your
Scheme), and ‘eat out to help out’.
is going to become challenging with
P I C T U R E D A B OV E James Farge, Managing Director
Ukraine, and the impact of fuel price hikes. A
downward pressure on house prices. But
property 2. Their
property
portal
advertising:
So, what impact will the Base Rate rise
we must factor in the shortage in property
have on the UK property market and how
stock which will go some way to rally against
will this affect a property’s value?
the impact of rising interest rates, making
3. Their local and national marketing
The short answer is that there is no certainty
this a very interesting market. My advice is
strategies, which will attract buyers from
as to what will happen. If the past two years
that if you are looking to sell – do not wait!
around the country, including people
has taught us anything, it’s that housing
Get your property listed and under offer as
markets react unpredictably after a major
quickly as possible and take advantage of
global event. However, the HIVE team is
the current market buoyancy by securing
here to advise you on how to best mitigate
your buyer at a good price.
including enhanced listings to stand out from the crowd
relocating 4. Top
quality
online
video
content,
including drone footage 5. Social media campaigns that ensure all
selling or buying at the wrong time - and
avenues are explored to find you that
how to recognise property opportunities in
What if I am looking to buy?
an uncertain market.
If you are looking to buy, debt remains
perfect buyer.
historically cheap; if you move quickly, you
The days of listing a property on Rightmove
The property market is influenced by several
can still fix your mortgage at a sensible rate
with some poorly lit pictures taken by the
factors, two of the biggest drivers are: 1).
for three or more years, which will help to
agent and hoping someone calls in are over.
The availability and cost of debt (loans and
ride out the potential pricing fluctuations
In a difficult market, great deals are done,
mortgages), and 2). Market sentiment (buyer
we are going to see over the next few years.
but only by those that have great marketing.
than they have in 40 years, debt is becoming
How do I ensure I get the best price for
If you are thinking of selling anywhere in
more expensive. In the coming months,
my property?
Dorset, please do call me or my team at
some buyers will be forced to re-evaluate
If you are looking to sell, you will need to
HIVE and Partners where we will be pleased
their position and take less debt exposure
ensure that your property really stands
to demonstrate how, if things get tough, we
as a multiple of their affordability. This will
out from the competition. Don’t forget, the
will still ensure you get moved.
confidence). With interest rates rising faster
C O N TAC T
WEBSITE
01202 122 002
sales@hiveandpartners.co.uk
www.hiveandpartners.co.uk
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