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Jul 2023

Business

Interest rate rises will affect Harrogate least, says property expert Kempston-Parkes

Published: 5 Jul 2023, 12:20 BST

Updated: 28 Jul 2023, 09:37 BST

by John Grainger

This story is sponsored by Kempston-Parkes.

As concern grows across the country following the latest rise in interest rates, Harrogate’s foremost chartered surveyor says he’s confident the market will remain largely unaffected in our area.

Last week, the Bank of England raised interest rates to 5% – a level not seen since 2008, when the global financial crisis hit. As a result, mortgage lenders have been withdrawing deals and raising their rates ahead of a predicted peak of 6% later this year.

But Andrew Kempston-Parkes, of Kempston-Parkes Chartered Surveyors, said:

“A lot of people seem very fretful about the housing market at the moment – there’s a lot of bad news in certain sections of the press. But what I’m seeing here in Harrogate and the surrounding areas is that sales are still going ahead.

“Interest rate rises don’t seem to be having much effect here, and Harrogate and Knaresborough still have a very strong market. Those agents that are busy are very busy, and the houses that are coming to market are still selling.”

Mr Kempston-Parkes said the town and its surroundings had so many “pull” factors that the local property market would be able to weather any storm arising from the 0.5 per cent rate increase.

He said:

“In my career I have seen four sets of rises in property values and four sets of falls in property values ('booms and busts', if you are a certain tabloid newspaper), but the long-term trajectory is upward.

“And whatever happens in terms of a fall in value across the country, Harrogate and district has always been affected least and we have always recovered to the high level of values, quicker than anywhere outside of London. Our property market is resilient."

He said the area has high levels of employment, good schools and a clean environment, meaning that plenty of people still want to settle here from other places.

Mr Kempston-Parkes added that with six trains a day to King’s Cross, London is very accessible for commuters for those working in the capital for two or three days a week.

He added:

“Despite Menwith Hill being significantly rolled back in terms of personnel, it still contributes the Harrogate’s housing market, not least because most of the housing up there has been demolished. That means there are a lot of base personnel in the rental market, which in turn supports the general housing market.”

Mr Kempston-Parkes earned his professional qualifications form the Royal Institution of Chartered Surveyors (RICS) in 1997, and founded Kempston-Parkes Chartered Surveyors in 2011. It now employs 15 people from its offices in central Harrogate.

Find out more:

Kempston-Parkes Chartered Surveyors provide surveys and valuations for all purposes, including purchase, inheritance tax, capital gains tax, matrimonial assessments, boundary disputes and Land Registry plans.

For more information, go to www.kempston-parkes.co.uk, or for a confidential conversation about your requirements, call 01423 789111.