Directors’ comment: interest rates rise

Ten years ago the first iPhone was four months old and and the world was standing under Rhianna’s (presumably purple and white) ‘Umbrella.’ Last week, the Bank of England increased the base interest rate for the first time in over a decade, so what does this mean for our local property market? With over a century of combined experience, the team at Horton and Garton can provide an accurate forecast of the impact on West London.

Lenders have bumped up the cost of fixed rate mortgages and mortgage borrowers on tracker and variable rates will see their monthly payments become more dear. Horton and Garton founder John Horton says of the increase, “This dose of reality, which frankly we’d all been expecting, has the potential to significantly impact the property market here in West London. As market leaders in Hammersmith, Chiswick and Shepherds Bush, we’ve had a record year for sales agreed. A pool of active buyers has snapping up superb properties, but we’ve had just as many proceedable buyers sit on the fence to watch the market. I believe the increase in the BofE’s base rate will provide much needed clarity for this pool of buyers, encouraging them to get on with life and snap up their next home or buy-to-let on a long term fixed rate before they rise significantly.”

Paul Cooney, Director of Horton and Garton’s Chiswick office, agrees. “Decision making will definitely be sharpened in this last quarter of 2017 and indeed going into 2018. The ten year historic low is over and rates will now begin to rise. In seven West London autumns, I’ve never felt such a palpable shift in attitude. Both buyers and sellers are readying themselves to purchase and sell. I’m having lengthy conversations about mortgage products with local brokers who tell me their phones are ringing and enquiries are on the up. The lower volume of sales has been a result of economic uncertainty and has meant a back log of indecisive yet proceedable buyers has accumulated over time. I predict we’ll see these buyers come to the market in the last quarter of this year and the first quarter of 2018.”

If you’d like an accurate review of the Chiswick, Shepherds Bush or Hammersmith property market or require an up to date valuation of your property call the market leaders for an honest, insightful discussion:

Hammersmith and Shepherds Bush: John Horton, 020 8819 0510

Chiswick: Paul Cooney, 020 8996 5120