There’s been a lot in the news recently about interest rates and what might happen next. It’s the kind of topic that can quickly create uncertainty, especially when global events begin to influence the direction of travel.
In March, the Bank of England chose to hold interest rates at 3.75%. On the face of it, that brings a sense of stability. However, there is still a cautious tone, particularly around how ongoing global tensions could impact inflation and borrowing costs as the year unfolds.
Behind the scenes, one of the key indicators we watch in the property market is the five-year swap rate. It’s not something most buyers or sellers follow closely, but it plays a big role in how lenders price fixed-rate mortgages.
Over the past few weeks, that rate has edged up. In March, it has averaged around 4.4%, compared to 3.8% just a month earlier. That shift reflects a change in market sentiment, with lenders reacting to increased uncertainty.
That said, it’s important to keep this in context. We are still comfortably below the levels seen during the mini-budget in 2022 and the inflation spike in 2023, when swap rates climbed above 5%. So while the recent increase has caught attention, it’s nowhere near the shocks we’ve experienced before.
And this is where looking locally gives a much clearer picture.
Here in Lancaster and Morecambe, the property market continues to move forward with confidence. At JDG, we’ve already agreed over 40 sales from our Lancaster office alone this March. That’s a strong level of activity and a real reflection of the demand that still exists across our area.
What we’re seeing is a market that has adjusted rather than slowed. Buyers are still active, still booking viewings, and still making decisions — but they’re doing so with a little more consideration than perhaps they did a few years ago.
That’s not a negative. In many ways, it creates a more balanced and sustainable market. Transactions are still happening, but they’re built on confidence and careful decision-making rather than urgency.
For anyone thinking of moving, this is an important point. The headlines might suggest uncertainty, but the reality on the ground in Lancaster and Morecambe is far more stable. People are still relocating for work, upsizing, downsizing, and making long-term decisions about where they want to live.
The property market has always been shaped by both national trends and local behaviour. And while national indicators like interest rates and swap rates give us direction, it’s the local market that really determines what is happening day to day.
Right now, that local story is a positive one.
There is movement, there is demand, and there is opportunity for those who approach the market with the right expectations.
If you’re wondering what this all means for your own plans, whether that’s moving soon or simply exploring your options, we’re always here for a conversation. Because beyond the headlines, the Lancaster and Morecambe market continues to show its strength.
You can call me on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle x