Bank of England’s holds interest rates at 4%
With the Bank of England’s decision to hold interest rates at 4%, here are some thoughts from the Industry.
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.”
Nathan Emerson, CEO of Propertymark:
“Throughout the world, many central banks have faced considerable pressure to reduce interest rates, and the UK has been no exception. The Bank of England remains in a challenging position to achieve long-term economic growth and not risk disrupting the progress already made.
“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.”
Sarah Thompson, Group Financial Services Director, Mortgage Scout:
“With the Bank Rate held at 4% today and August inflation steady at 3.8%, borrowers have a welcome window of stability. Markets are split on whether we will see another small cut before the end of the year, but any move is likely to be gradual. Stability at the top end is feeding through to mortgage pricing, and lenders remain competitive across two and five-year fixes as well as trackers. We are also seeing more flexibility around affordability assessments and deposit routes, with a broader range of options for smaller deposits. That is giving buyers and movers greater confidence to progress plans.”
“If your current deal ends within the next six months, my advice is to secure a rate now to protect your monthly costs, then ask your broker to keep monitoring the market so you can switch to a better deal if pricing improves before completion. That approach gives you certainty today without losing flexibility tomorrow.”
“For first-time buyers, an agreement in principle and a reserved rate can turn a viewing into a purchase with less stress. For existing homeowners, a proactive review may reveal smart options such as a product transfer or a shorter fix to manage payments while keeping long-term plans on track. The message is simple: use today’s stability to lock in value.”
Daniel Austin, CEO and co-founder at ASK Partner:
“With global volatility high and domestic policy still in flux, the MPC is holding steady. Markets are still pricing in a cut before year-end, but with the Autumn Budget looming and an uncertain economic background, policymakers are unlikely to move until fiscal plans are clearer.
“For homeowners and buyers, the hope of lower borrowing costs lingers, yet persistently elevated fixed mortgage rates mean relief is not imminent. With inflation unlikely to return to the 2% target this year, mortgage pressures look set to persist. Investors and developers will also be watching closely. Resilient sectors such as co-living, build-to-rent and storage continue to attract capital thanks to tight supply and strong demand, but a stable downward inflation trend is critical to unlocking broader activity. Should the predicted BoE cuts arrive, they could act as a spark, but for now, only the most agile investors may find opportunities in a cooling market.”
Kevin Shaw, National Sales Managing Director, LRG:
“It is no surprise that the Bank of England has chosen to hold interest rates at 4%.
GDP grew only very modestly in the second quarter, consumer price inflation (CPI) – as we saw yesterday – remains above target and the political backdrop is anything but stable. In such circumstances, it is far better to pause now than to cut rates only to raise them again in the months ahead.
For the property market, consistency is more valuable than short-term shifts. After several years of turmoil, stability is welcome. At LRG we saw solid summer trading and our clients tell us that predictability in the market allows them to make decisions with greater confidence.
A potentially troublesome Budget is looming in November. For this reason and others, the Bank of England must appear to be steering a steady course, especially if there is a risk of choppier waters are ahead.
Interest rates will inevitably be reduced in time, but for now the Bank’s decision provides the reassurance the economy – and the property market in particular – needs to move forward with confidence.”
Melanie Pizzey, CEO and Founder of the Global Payroll Alliance:
“The Bank of England’s decision to hold rates offers stability, but it won’t change the fact that the jobs market is slowing and pay growth is easing.
For employers, steady borrowing costs help with workforce planning, but caution on recruitment and wage rises is set to continue. For employees, that means job availability may remain tight and pay increases more modest, particularly with inflation still eroding real incomes.
A hold brings predictability, but not momentum and we’re entering a period of wage moderation and selective hiring rather than rapid expansion.”
Stephanie Daley, Director of Partnerships at Alexander Hall:
“Today’s hold to the base rate was widely anticipated and this has already been reflected by many lenders with respect to their current product offering.
The good news is that previous rate cuts have already brought about a greater degree of confidence amongst lenders and buyers and, as a result, we’ve seen a greater range of mortgage products introduced in recent months to help drive market activity – from lower deposit offerings to higher loan to income multiples.
So whilst a hold might not be the decision many wanted to see, the market remains in a very good position going into the last quarter of the year.”
Jonathan Samuels, CEO of Octane Capital:
“A hold on the base rate was widely expected and while many homeowners and buyers may be disappointed not to see a cut, the reality is that it could easily have gone the other way.
With inflation stuck at 3.8% and still some way off the Bank of England’s 2% target, wage growth now slowing, and GDP growth flat, the economy remains in a state of limbo.
This has been a recurring theme for some time and it could be argued that had the Bank of England taken a more bullish approach to curbing inflation earlier, greater progress may have been made by now.
Instead, we find ourselves treading water and whilst the property market is standing firm, any notable momentum is unlikely to materialise until we see stronger signals of sustained economic recovery.
CEO of Foxtons, Guy Gittins:
“The decision to hold the base rate comes as no surprise given the fact that inflation remains stubbornly higher than the Bank of England would like.
Of course, it remains very much a case of the tortoise, not the hare, where the current market trajectory is concerned and this is likely to continue in the lead up to the Autumn Budget, as many buyers adopt a wait and see mentality in hope of further stamp duty reforms.
Whether or not this materialises remains to be seen, however, we anticipate a surge in market activity in the weeks that follow, with a particularly busy run-up to Christmas as pent up demand is released.”
Shepherd Ncube, CEO of Springbok Properties:
“Today’s decision to hold the base rate will do little to boost a housing market that has been stagnating for some time, particularly at higher price thresholds.
The current reality is that the market is suffering from a high level of over-supply and there simply isn’t a sufficient number of buyers acting with conviction. This has resulted in sellers having to slash asking prices in hopes of enticing an offer and, even when they are successful, we’re seeing a great deal of transactions fall through.
This is leaving many sellers understandably frustrated and whilst we would usually see a surge in activity in the run up to Christmas, this year, the chances of completing before the turkey hits the table are very slim indeed.”
Verona Frankish, CEO of Yopa:
“Today’s rate hold will bring stability to the property market but it won’t help to ignite buyer activity which has remained subdued of late. This could result in a far longer winter than many home sellers may have liked, with the chances of Santa leaving a sale completion under the tree this December looking far slimmer.
The positive is that the market is still standing strong and whilst we may see a lack of urgency from buyers with respect to making their move before Christmas, the long-term picture is one of continued house price growth and a steady and stable level of transactions.
As a result, committed buyers and sellers should have no trouble in finding common ground before the year is out.”
Director of Benham and Reeves, Marc von Grundherr:
“The decision to leave the base rate unchanged will see the property market remain in a holding pattern for the foreseeable future, particularly with the Autumn Budget looming.
This isn’t necessarily a bad thing given that the current market landscape is one of overarching positivity, driven by greater certainty and more measured house price growth, with both buyers and sellers benefitting as a result.
There’s currently an abundance of stock on the market providing buyers with greater choice, the mortgage market is ripe with a range of more favourable products compared to previous years and house prices are climbing but not at extraordinary rates.
All in all, the outlook is positive and there’s little to suggest this will change, even with wider economic headwinds caused by sticky inflation and flat GDP growth.”
Colby Short, Co-founder and CEO of GetAgent:
“Today’s decision will come as no surprise and while no news is technically good news, it will do little to move the dial for the property market.
This means we continue on a path of resilience rather than rapid growth and with inflation remaining well above target, wage growth softening and GDP flatlining, this could remain the case for some time.
The real driver of activity in recent months has been the improving mortgage landscape, with lenders easing affordability and broadening product choice. Until the Bank takes firmer steps on inflation, that lender-led momentum will remain the key factor keeping the market moving.”
Isaac Stell, Investment Manager at Wealth Club:
“The Bank of England has held interest rates at 4.0% in September, following a 0.25% cut in August. With inflation still hovering at nearly twice the Bank’s target, the case for further easing is growing harder to make.
The BoE currently faces a dilemma, easing rates risks further fuelling inflation, but high rates strain an already weak economy. Add into the mix a government that is due to deliver a budget that needs to plug a black hole running into the tens of billions and the quandary becomes ever more complex.
For now, the real action may lie not with the Bank, but with Westminster. The BoE remains sat on the sidelines, waiting to see what tax and spending decisions emerge in the budget. Moves prior to this could backfire and the Bank likely wants to see to see whether the government manages to navigate the budgetary gauntlet before making its next play.”
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