Trump’s Election and UK Base Rate reduction -Impact on the Cotswolds Residential market
Senior Partner
Keep up to date with the latest properties, rural business insights, market commentary and events:
Join mailing listThe majority of the American voters have awarded Donald Trump a resounding victory. The populace has spoken and the new administration has significant power. With the extent of the majority, certainty has been secured.
The President can be expected to implement many of the policies he considers will ensure that ‘America is great again,’ some of which are isolationist and protectionist.
The general feeling is that the American economy will strengthen and prosper, however the lower taxes promised, if implemented are likely to be inflationary. This will in turn impact other economies across the world. Stock markets have reacted positively, but rising inflation expectations, together with rising bond yields, have the potential to dampen the market mood.
A few disillusioned Democrats have already begun to abandon the promised land and look for bolt holes out of the US, however a mass exodus is unlikely, and will have little affect on the UK residential market. We have though already had a couple of inquiries for houses in the Cotswolds as a direct result of the election’s outcome !
The Governor of the Bank of England is not prepared to be drawn on speculation about the affect of any tariffs that may or may not be implemented in favour of the US, at this stage.
The Bank of England has reduced interest rates for the second time in three months to 4.75% and has said the path is “downward” but “gradual” . It comments that there are a lot of risks in the world. It will be some time before the extent of these pressures becomes clear. Also, it will take time to evaluate the affect of the increase in Employers NI rates. Inevitably prices will be pushed higher at a faster rate, resulting in higher inflation following last week’s Budget. The OBR’s growth forecast will be watched closely.
The Bank’s base rate heavily impacts the level of borrowing and mortgage rates, which are expected in the short term to reduce. Together with assisting consumer spending, this should help sustain the UK residential property market. The Cotswolds residential market remains resilient, supported by the certainty that the recent budget is now behind us and, the steady hand of Andrew Bailey.
We wait to see how the market perceives things but believe confidence will return.
Image credit - Free Malaysia Today
No changes were made to the image
Butler Sherborn is delighted to sponsor the Members Marquee, Moreton Show - Saturday 6th September
Moreton Show is one of the UK’s largest and most prestigious one-day agricultural shows. It’s a celebration of British farming, rural traditions, and community spirit.
Butler Sherborn is delighted to sponsor the Members Marquee, Moreton Show - Saturday 6th September
Drought Tolerant Plants By Oxford Garden Designs
After the long, hot, dry spring and summer the impact of climate change in most of our gardens is obvious. Establishing that pristine, green stripy lawn has been a challenge this summer, and, given the shortage of water in our reservoirs, not sustainable. Many of our favourite garden plants have fried, shrivelled, or even died so it seems inevitable to me that us green-fingered folk will have to make some changes in our approach to maintaining gardens.
Drought Tolerant Plants By Oxford Garden Designs
Mortgage Rates - Recent Developments
Charlie Huxley, the founder of Huxmor Limited, discusses the recent developments in mortgage rates. While the changes may not be dramatic, they create a vital opportunity for homebuyers and landlords to take decisive action and leverage on strategic advantages.
Market Update
Pub Of The Month - The Woolpack, Slad
Nestled in the Slad Valley, The Woolpack has been celebrated for its unique charm for more than 300 years.
Pub Of The Month
