Sir Keir Starmer’s resignation as Prime Minister has understandably prompted questions from homeowners, landlords and buyers about what this means for the property market.
The simple answer is that, in the short term, probably very little.
Property markets are influenced far more by interest rates, inflation, employment levels and consumer confidence than by any one individual occupying Downing Street. While political change can create uncertainty, most people move home because of life events such as growing families, relocation, downsizing, retirement or investment opportunities.
The area worth watching over the coming weeks is the financial markets. Mortgage lenders base many of their fixed-rate products on expectations of future interest rates and economic stability. If investors become concerned about the direction of a new government, borrowing costs could be affected. Equally, if markets remain confident, mortgage rates may see little or no impact at all.
For now, the local property market remains active.
Across Cirencester and the surrounding villages, buyers are still viewing properties, sellers are continuing to bring homes to the market, and landlords are still experiencing strong demand from prospective tenants.
In many ways, the property market has become remarkably resilient. Over the last decade alone, homeowners have navigated Brexit, the pandemic, record-low interest rates, the stamp duty holiday, inflationary pressures and rapidly rising mortgage rates. Through each challenge, people have continued to move home.
The coming weeks will therefore be less about who replaces Sir Keir Starmer and more about whether the new government can provide economic stability, maintain confidence and support sustainable growth.
As always, if you would like to discuss the current Cirencester property market, whether you are thinking of selling, buying, letting or investing, please feel free to get in touch.