Published by: Alex Maile
At this time of year, there's a whole rash of bank holidays - first there's Easter, then one in early May and another at the end of the month. It's when we shake off our winter blues and start getting out and about. And, this year, with all that sunshine, we have an even bigger spring in our step than usual.It is also one of the busiest periods for home sales. However, thanks to Trump and his tariffs, Spring has been a bit of a roller coaster this year. The property market, though, has once again proven its resilience but has been a little bit more subdued than normal.
The most up-to-date index, Rightmove’s, shows asking prices were up by 1.1% in March. Sales volumes were also around 10% higher than they were in 2024 and, moving forward, the portal is expecting prices to continue along a similar path.
And Trump could prove to be surprisingly good news for borrowers. That’s because, amidst all the chaos, to stimulate growth (and house buying), the money markets are expecting the Bank of England to have to cut interest rates further and faster than was originally predicted.
Most experts had been factoring in two further rate cuts this year, but now that number is three and possibly even four. Mortgage rates are already coming down in anticipation of the first expected reduction in May and the base rate could go as low as 3.5% by the end of the year.
In the lettings market, there is more evidence of a slowdown in rental rises. Annual growth, according to Zoopla, is running at 3%, which is the lowest rate for three and a half years. There is, though, an average of 12 renters chasing every available property.
Zoopla says they expect the slowdown to continue for some time to come, but that demand will still outstrip demand and rents will rise between 3% and 4%.
That’s all from me for now but, no doubt, between now and May, Mr. Trump is sure to provide plenty more material for my next missive.
Happy holidays.