The Bank of England has today announced that it will hold the Base Rate at 3.75%, keeping interest rates unchanged as policymakers continue to assess the impact of higher energy prices and rising inflation.
The decision was made by a majority of 6–3, with six members of the Monetary Policy Committee voting to maintain the current rate and three preferring an increase of 0.25 percentage points to 4%.
The latest decision comes as inflation has moved higher again. CPI inflation rose to 3.1% in August, up from 2.9% in July, with transport costs – particularly motor fuels – contributing to the increase. (1)
The Bank has warned that inflation is likely to rise further over the coming quarters as higher energy prices feed through into household bills and business costs. However, it said there has so far been limited evidence of these pressures feeding more widely into wages and prices.
For the property market, today’s decision means continued stability in the Base Rate for now. However, with inflationary pressures increasing, mortgage pricing is likely to remain sensitive to changing expectations around interest rates.
For buyers, today’s decision means there is no immediate increase in the Base Rate, providing some stability when it comes to planning a property purchase.
However, mortgage rates are influenced by more than the Bank of England Base Rate alone. Lenders also respond to financial market expectations and wholesale borrowing costs, which means mortgage products can change even when the Base Rate remains unchanged.
The Bank noted in its September update that mortgage rates have already increased compared with levels seen before the recent rise in global energy prices. (2)
That makes preparation particularly important for anyone considering buying a home this autumn.
Understanding your borrowing position early, securing an agreement in principle and knowing what monthly repayments may look like can help you approach your property search with greater confidence.
If you are buying with a mortgage, speaking to an adviser at the outset can help you understand what is affordable and which products may be suitable for your circumstances.
For sellers, the decision to hold the Base Rate offers some short-term stability for buyers and homeowners considering their next move.
Although the wider economic backdrop remains uncertain, keeping rates unchanged avoids an immediate increase in borrowing costs directly as a result of today’s decision.
Buyers are still active, but affordability and value remain important considerations. Well-priced, well-presented homes are therefore likely to be best placed to attract serious interest.
For homeowners considering selling this autumn, preparation remains key. Getting an accurate valuation, preparing your property for market and having a strong marketing strategy in place can help put you in the best possible position.
For those making an onward move, understanding your own mortgage position early can also help you plan with greater certainty.
If you are thinking of selling your home, an accurate property valuation and a clear understanding of your local market are more important than ever.
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For landlords, today’s decision means the Base Rate remains unchanged, but borrowing costs continue to be an important consideration when reviewing an existing portfolio or considering a new investment.
Landlords approaching the end of a current mortgage deal may find that refinancing costs differ considerably from those available when their existing product was arranged.
At the same time, changing market conditions can create opportunities for investors who are financially prepared and taking a longer-term view.
Some landlords may choose to review the performance of their existing properties, while others may look for new opportunities where purchase price, rental demand and potential yield support their investment objectives.
As always, the right approach will depend on your funding position, timescales and longer-term plans.
The key takeaway from today’s announcement is that the Bank of England has chosen to keep the Base Rate at 3.75%, but the outlook remains uncertain.
Inflation has risen to 3.1%, and the Bank expects it to increase further over the coming quarters as higher energy prices continue to work their way through the economy. Policymakers have also made clear that they are monitoring the risk of these pressures becoming more persistent.
The next Bank of England Base Rate decision is due on 5 November 2026. (3)
For buyers, sellers and landlords alike, the current market continues to reward preparation, realistic pricing and good advice.
Whether you are planning your next move, exploring your mortgage options or reviewing an investment property, having the right support in place can help you make informed decisions as conditions develop.
To find out how the latest Base Rate decision could affect your plans, get in touch with Edward Mellor today.
With over 40 years of proven experience in helping people to buy and sell property, our local property experts will guide you through every stage of your property journey.
Sources
1 – Office for National Statistics – Consumer Price Inflation, August 2026
2 – Bank of England – September 2026 Monetary Policy Summary and Minutes
3 – Bank of England – Interest Rates and Bank Rate: Our Latest Decision
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