Combined with the plethora of good schools, superb dining and shopping, and the central location with excellent communications, it is no surprise that demand is sustained.

In terms of the stability of house prices and the potential for real growth, the Cotswolds will not be immune from the economic pressures that affect the country as a whole. It is expected in general terms that the residential property market will soften nationwide. The slight increase in inflation, resulting in the Bank of England’s reluctance to reduce the base rate further at this stage, will undoubtedly have an effect on mortgage rates and sales, which are already price sensitive. However, some are anticipating that in the Cotswolds, which is an highly desirable area with a limited supply, scarcity could result in modest price increases in some particularly sought after villages or for unique houses.

The Rental market has remained fluid in 2024, especially for good family houses and cottages. This is fuelled by those renting after sales to enable them to move swiftly when the right house comes to the market. In addition, sadly for some, high mortgage rates and affordability may force them to rent, which also boosts demand for rental properties. Investors might well view the area as a prudent option for strong rental yields, especially for high-end or holiday rental properties, despite the increase in SDLT.

In both the sales and rental sectors, increasing focus on energy efficiency and green credentials may well drive demand for properties that already have ecological sustainable features. Buyers are certainly beginning to favour properties with EV points, heat pumps, solar panels and high EPC ratings, particularly bearing in mind the rise in energy costs and government initiatives.

The main challenges in the Cotswold residential property market in 2025 will be higher mortgage rates which will limit activity, especially from the middle income buyers. Supply will remain limited, particularly in respect of new housing, as planning restrictions continue to apply to the Cotswolds designated an AONB.

We would advise buyers to act early in the year ahead of any potential interest rate reductions, which are likely to stimulate demand. Investors will do well to consider holiday lets and premium rental properties, paying attention to EPC requirements to future proof the investment.

In conclusion, the Cotswolds remain an attractive place to live, work and raise families, whether in a primary residence or weekend home. Any global recession, financial shock or conflict could depress consumer confidence, and impact the property market across the country. However, we anticipate that demand for well located and presented Cotswold properties will be sustained as we move into 2025, as long as sellers are sensitive to the economic environment, and their properties are priced accordingly.