Surrey Property Market: What the latest rate cut means.

There is an interesting stubbornness in today’s property market.   Whilst there is undoubtedly an underlying optimism, this is juxtaposed by the constraint of affordability.   

The first quarter of this year started well, mainly fuelled by the looming stamp duty deadline.  Naturally, the 2nd quarter of the year was quieter in comparison.  When you consider this against  2024, we have seen some significant increases across the board.  To highlight this, key national headlines from the latest TwentyEA Property & Homemover Report show:

• The supply of New Instructions in Q2 2025 increased by 5.6% compared to Q2 2024. 
• The supply of properties newly for sale is at its highest point in the last 7 years, rising by over 4.2% year-on-year for 2025 year-to-date. 
• Sales Agreed volumes are up by 5.3%. When we look at 2025 year to date, this has increased by more than 7% year-on-year. 
• However, overall residential transactions in 2025 to date are 30% higher than in 2024.

Buyers haven’t had this much choice for quite some time.  So, what is stopping the market from running away with itself?  In short, affordability.      

In our part of Surrey, our experience of late has been that buyers are comfortable with taking their time to view multiple properties, before they are prepared to commit to offering on one.  Mindful of value, and which properties demonstrate that, or not as sometimes the case may be, we find ourselves in a very price sensitive market. Whilst the towns may be noticeably quieter, due to the school summer holidays, buyers remain active and serious buyers are out in full force.  

The Bank of England’s decision to cut interest rates from 4.25% to 4% will certainly help with mortgage affordability.  It's the Bank's fifth cut since last August and takes the cost of borrowing to its lowest level for more than two years.  This helps those wanting to get on the ladder, upsize or remortgage and has an impact on buyer confidence. Over time, this will unlock more competitive mortgage rates and reduce monthly payments.  

As Landmark’s CEO, Simon Brown, rightly observes: "This is not a market in retreat – it’s a market on pause. Everything is in place: a prepared industry, motivated sellers, and potential buyers eager to make a move. The finger on the trigger belongs to the Monetary Policy Committee of the Bank of England. Find out if they pull it on August 7th.”

If you are looking for expert advice and strategic guidance to navigate these complex market conditions, we would be delighted to help.  


Source:
Estate Agent Today: Will the Bank of England make us all trigger happy?
TwentyEA Q2 2025 Property & Homemover Report