The Bank of England has held interest rates at 3.75%, as policymakers weigh persistent inflationary pressures - partly driven by higher energy costs - against a still-fragile economic backdrop.
That tension is already playing out in the property market.
Buyer sentiment has softened in recent weeks, with some stepping back in response to rising borrowing costs and wider geopolitical uncertainty in the Middle East. However, underlying demand remains more resilient than headline figures suggest.
According to Chestertons’ latest data, enquiries fell by 21% year-on-year in March as some buyers adopted a more cautious, ‘wait and see’ approach. Crucially, this slowdown has been largely confined to early-stage demand.
More committed buyers are still progressing. New offers were just 6.7% down year-on-year in March - a marked improvement from a 40% decline at the start of the year - pointing to stabilising buyer intent following the post-Budget slowdown.
Adam Jennings, Head of Residential at Chestertons, comments:
“The decision to hold rates should help steady buyer confidence at a time when some have taken a more cautious, ‘wait and see’ approach. We saw enquiries fall in March as geopolitical uncertainty weighed on sentiment, but importantly, this hasn’t displaced underlying demand.
“Buyers who are already in the market are continuing to progress, and new offers have improved significantly from the start of the year. With affordability gradually improving and supply remaining tight, we expect activity to remain resilient as we move further into the spring market.”
The latest data suggests a market that is becoming more selective rather than materially weaker. Buyers are taking longer to commit and are more sensitive to pricing, but transactions continue where expectations are aligned.
Sales or Lettings?
