Immediately after the Election result was announced the markets in the City rose in a collective sigh of relief as the period of uncertainty ended. The new Labour government has been fortunate to inherit a rate of inflation back down to 2%. This rate, combined with the cut in the base rate to 5% and the resultant effect on mortgage rates, has ensured that the residential property market in the Cotswolds is benefitting from the general air of stability achieved.

There is no doubt that the new Government’s positive and clear communication, albeit it in the honeymoon period, is helping to instil a gentle feeling of confidence, and buyers are finally committing by making credible offers. Stock levels are good, which ensures buyers have choice, but they can not afford to prevaricate indefinitely as the Cotswolds remains an extremely popular area in which to live. This genuine pressure from healthy and consistent demand should ensure that prices remain fundamentally firm.

The King’s Speech, clearly indicated the new administration’s intention to address the housing shortage across the country, and they will ease certain planning regulations to help tackle the issue. The Renters Reform Bill has been listed for the attention in the first Parliamentary session, and whilst it looks to prevent no fault evictions to help tenants, it is likely to have a deleterious effect on the rental housing stock, as Landlords decide to sell rather than let properties. This is already happening in the Cotswolds.

The Speech did not at this early stage of the new Government’s term make any mention of changes to SDLT or Inheritance Tax. For the immediate future, the residential market can look to a period of quiet confidence and stability, together with the prospect of slightly lower mortgage rates. We would therefore advise sellers to continue with their plans to market their properties as we look to an active autumn market. We have already witnessed an increase in both buyer registrations and offers received as confidence is slowly restored in the Cotswolds property market and the economy generally. The Cotswolds continues to be an extremely attractive and popular place for people to live and work. It is intrinsically beautiful, with excellent road and rail communications, and consequently attracts dynamic, creative businesses and people. Demand traditionally outstrips supply and buyers will hesitate to make offers at their peril.

Butler Sherborn is currently marketing some stunning properties across the Cotswolds, and the price ranges.

Brook House, Lower Slaughter Guide Price £2,850,000

https://www.butlersherborn.co.uk/property/brook-house-the-square-33160058

West Meadow, Chedworth Guide Price £2,150,000

https://www.butlersherborn.co.uk/property/west-meadow-33085981

The Gables, Inchbrook Guide Price £1,500,000

https://www.butlersherborn.co.uk/property/west-meadow-33085981