Property industry experts have been united in their reaction to the Bank of England’s decision to hold the base rate at 4%, agreeing it was widely expected and offers stability to homeowners.
Matt Smith, Rightmove’s mortgage expert:
“A Base Rate hold today had looked fairly nailed on, especially after yesterday’s news that inflation remains stuck at 3.8%. The later-than-usual Budget is very much on the horizon, and the markets are having to wait until the end of November for answers to the questions that are driving a lot of the current uncertainty. So, it’s not surprising we’ve seen market expectations for the next Base Rate cut shift from late 2025, into early 2026.
“We’ve seen average rates drift up recently, and with today’s decision unlikely to relieve the pressure lenders are feeling, we could see rates continue to rise in the coming weeks. This time last year, we saw a jump in activity as the Bank cut the Base Rate for the first time in four years. Our data shows that sales agreed are currently +3% higher than they were during this busy period, signalling that, for now, mortgage rate increases are not putting off those looking to move home.”
John Phillips, CEO of Just Mortgages and Spicerhaart:
“Even with the shock news on inflation yesterday, a hold on the base rate comes as no surprise. We know the central bank prefers its careful, gradual approach to monetary policy and with a cut last month, stubborn inflation and fierce headwinds at home and abroad, they are not likely to deviate just yet. Whether this leads instead to a November cut is still too early to call – while the economy is stagnating and needs an urgent boost, we just don’t know yet if inflation has peaked and what impact the upcoming Autumn Budget will have.
“This week’s news is more likely to deliver a correction, rather than a dramatic change in mortgage rates – with swap rates creeping up recently. The encouraging thing for us that in the main, buyers and sellers don’t seem to be holding off on their plans with good business levels across both estate agency and financial services. While the picture ahead is still unclear, brokers are continuing to deliver real value to clients in navigating the market today – exploring options, nurturing confidence and providing a five-star service.”
Simon Webb, managing director of capital markets and finance at LiveMore:
“The MPC’s decision to hold the base rate at 4% has been widely expected as the Bank juggles persistently high inflation and weak growth. While borrowers will always welcome cuts, this stability gives lenders and intermediaries the space to plan with greater confidence.
“All eyes will now be on November’s Budget and the impact that might have on the housing market and the potential for further rate cuts before the end of the year. Later life lending is set for continued growth. Increasing demand and awareness create clear opportunities to help older borrowers with solutions designed to meet their individual needs.”
Nathan Emerson, CEO of Propertymark:
“Today’s freezing of interest rates will give perspective to current homeowners and provide reassurance to those looking to take a new mortgage product, that costs will generally remain steady for the time being. Ultimately, it would be good to see base rates track downwards. However, it remains positive that we have seen an overall reduction since the start of the year, which has assisted in generating greater affordability for many.”
Joe Pepper, UK chief executive officer at PEXA:
“The chances of a rate cut happening today were almost non-existent, and with inflation remaining sticky and consumer prices rising, we now expect no cuts until 2026. Even if we did get one, it would have negligible positive impact on borrowing costs since it would have already been priced in by lenders.
“Aside from those who have no choice, we would now expect to see thousands of borrowers delay remortgaging until rates drop next year. When this does happen, the flood gates will open. There will be an enormous, almost unmanageable surge in demand for the cheapest rates. As always, the market will simply expect conveyancers to make do, but the truth is their capacity is already maxed out, and the lack of good infrastructure in place to help them will leave them floundering despite their best efforts to deliver for their clients.
“We must change this urgently by speeding up the digitisation of the process, freeing up conveyancers to focus on both remortgage and purchase transactions that need their expertise. Implementing the technology that creates certainty in the process is vital if we’re going to effectively navigate the challenges ahead.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“Today’s decision by the Bank of England to hold rates is not surprising given the persistent inflationary backdrop, but it underlines the tightrope policymakers are walking between stabilising prices and sustaining growth.
“The housing market has demonstrated remarkable resilience this year, with steady transactions and modest price growth even against a shifting economic landscape. While buyers are still motivated, the prospect of higher-for-longer rates and looming tax changes will weigh on sentiment in the months ahead.”
Jonathan Handford, managing director of Fine & Country:
“The Bank of England’s decision to hold rates reflects the ongoing challenge of tackling inflation while supporting growth. For the housing market, stability in borrowing costs should help maintain the resilience we’ve seen this year, with steady demand and improving affordability driven by wage growth and a greater supply of homes for sale.
“That said, uncertainty around potential housing tax changes in the Autumn Budget risks unsettling sentiment, and realistic pricing will remain essential for those hoping to secure a move before the end of the year.”
Andrew Lloyd, managing director at Search Acumen:
“For the property sector, this consistency provides a degree of predictability that has often been missing in recent years, which should help investors and developers plan with more confidence. Yet, the cost of capital remains high enough to keep transaction volumes subdued, and with the Bank signalling that no further cuts are likely this year, it may be 2026 before we see stronger growth momentum returning to the market.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“Today’s decision to maintain the status quo provides welcome stability for borrowers, particularly those on tracker products who won’t see immediate changes to their monthly payments. It also maintains a favourable environment for secured loans, allowing customers to access competitive rates without disturbing their existing mortgage arrangements.”
Claire Van der Zant, CEO of Novus Strategy:
“The Bank of England may be drip-feeding rate cuts into the mortgage market but activity is primed for a rebound. Transactions haven’t been over 100,000 in a single month since September 2021 and yet between 2013 and 2019 they were regularly at or approaching this level, crossing this boundary seven times.
“With money markets pricing in two more rate cuts by the end of next year and affordability measures easing back, the market could return to similar volumes relatively soon as buyers start reacting to a more favourable rate environment.
“If that proves correct, then lenders, brokers, agents and conveyancers need to be ready for more transactions. While that’s great news for everyone, lenders are going to have to be careful because they find it harder to make money the lower interest rates go.”
Nick Hale, CEO of Movera:
“This move was expected by the MPC, despite yesterday’s news that inflation did not hit 4% as forecast. With ONS data also confirming this week that the jobs market has continued to cool, a further base rate cut would be beneficial in November. But only time will tell whether the Autumn Budget is likely to impact spending habits and derail the Bank of England’s inflation projection – pushing the prospect of another cut back into 2026.
“In the meantime, for brokers and conveyancers, it’s important that transactions keep moving. Clients will be looking for clarity on whether now is the right time to move or remortgage. A hold provides a period of stability – some breathing space for brokers to prioritise building client relationships and providing that much needed advice and guidance. Likewise for conveyancers, now is the time to focus on making headway with transactions and streamline your key processes. As if inflation turns in the coming months and the base rate falls with it, efficiency will be the only way to stay afloat in a buoyant market.”
