We cover the high-value homes market in Surrey for Q2 2026. After a slow start to the year, the local market gained momentum through late February and March, with interest rates and mortgage rates easing and more proceedable buyers making strong offers. Activity was strongest around the £1.5–£2 million mark, driven mainly by buyers with a clear reason to move. That early optimism was then disrupted by a sudden geopolitical shock.
The bulk of the report deals with the fallout from the Iran conflict and what it means locally:

On 13 March, US and Israeli airstrikes on Iran triggered missile and drone responses and disruption to shipping through the Strait of Hormuz (a route for 20% of global oil), pushing up UK fuel and food prices.
Mortgage lenders reacted fast, with rates jumping over 1% and some first-time buyer products withdrawn, slowing the lower end of the market.
Ceasefires have brought early hopes of stability, though a modest energy bill rise is still expected in July.

James predicts that as confidence returns, mortgage rates should ease again, lender competition should improve, and the local market should be back in a stronger position by September. The current UK interest rate sits at 3.75%, with the next review on 18th June 2026.

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