In the UK this week, the Bank of England announced a cut in the base interest rate from 0.75% to 0.25%, an all-time low, as an emergency measure. This could have a profound effect on Guernsey’s already booming property market.
A reduced interest rate is designed to encourage borrowing and this has a knock-on effect on the appeal of mortgages. If a mortgage is suddenly a more affordable proposition then people will be more inclined to take one out and make that property purchase. The Guernsey property market reported its busiest year for completed transactions since 2007 in 2019 and that trend has continued into 2020, Livingroom Estate Agents can confirm.
In the last week we’ve sold two Local Market properties before we’ve even had the chance to list them on our website. This is testament to the level of client service provided by our award-winning team, who were able to match the properties with waiting buyers almost immediately, and also demonstrates just how much demand there is.
Over recent weeks we have taken steps in the face of the Coronavirus threat, and you can read about the precautions we have put in place here. The wellbeing of our employees, associates and clients is our absolute priority, and you can be assured that health and safety has our complete attention.
Current advice is pragmatic and allows us to carry on meeting and serving our clients so long as it is safe to do so.
The Local Market especially was busy before, but the reduction in interest rates is yet another factor that will influence the demand to buy.
It’s a sellers’ market at the moment so now’s the time to get in touch with our team and list your property for sale in Guernsey.