Following the news that the UK inflation rate has fallen more than expected to 3.2%, the Bank of England (BoE) today announced that it had cut its Base Rate from 4% to a three-year low of 3.75%.
However, while this will be welcome news for homeowners and buyers over the coming months, voting to cut Interest Rates remains a close-run thing, meaning that a cautious approach is still very much the watchword for the Bank’s Monetary Policy Committee (MPC).
The BoE last voted to reduce interest rates (to 4%) in August 2025, during which time the MPC only voted five to four in favour of cutting rates.
Today’s announcement follows a similar trend, with five members of the MPC again voting to cut rates, with four opposing.
This suggests that the Bank is paying close attention to developments in the economy in light of the recent Autumn Budget and an ongoing, if tentative, fall in inflation.
Commencing on the decision to lower Base Rates, the Bank’s Governor, Andrew Bailey, said, “We still think rates are on a gradual path downward, but with every cut we make, how much further we go becomes a closer call.”
With the recent Autumn Budget having a softer-than-expected impact on the cost of buying a home ahead of the anticipated New Year rush in property enquiries, the news of a lower Base Rate, and potentially lower mortgage rates, looks set to super-charge the property market over the next few months.
This could be a double-edged sword for buyers, who could benefit from lower mortgage rates but also greater competition when buying a home.
This means those looking to buy early next year or who need to sell ahead of a home move will need to move quickly to get ahead of the competition for homes.
A lower Base Rate will both improve buyer confidence over the coming months and potentially lead to lower mortgage rates – and better affordability for buyers.
With the anticipated Boxing Day and New Year rush in property enquiries, it is imperative that sellers act now to ensure that they are ready for the market quickly, so that their home is listed and marketed to potential buyers ahead of competing properties.
If the sale is being made as part of an onward move, expedience is even more urgent, as long chains and waiting for buyers could lead to sales falling through for those who aren’t prepared.
To ensure that you’re ahead of the Boxing Day rush, contact us today for a free, zero-obligation property valuation.
While Rachel Reeves’s Autumn Budget was less severe than some commentators had expected, the Chancellor did make some changes to property and income tax.
The introduction of a new property income tax and levy on properties valued over £2 million will mean that landlords (particularly those with high-value properties) will need to reassess their current investment strategies.
There has already been a surge in landlines opting to exit the rental market in light of current and upcoming changes to rental rules, so an increase in income tax for rented property will likely see more property owners making the same choice.
This has previously led to a high volume in auction sales for former and tenanted rental homes at auction, as first-time buyers and savvy landlords seek to take advantage of the fresh availability of stock.
If you are thinking of selling at auction over the coming months, contact our friendly and professional auction team for a free property appraisal and expert advice on marketing your property.
With a proven track record of selling at Auction, Edward Mellor Property Auctions can help landlords sell property and receive funds into their accounts in as little as seven weeks.
Whether you are buying your first home, moving house or expanding your buy-to-let portfolio, Edward Mellor Estate Agents are here to ensure that your property journey runs smoothly.
To discuss how the latest base rate news could impact your property transaction, contact our friendly local teams using the link below.
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