Breaking Property News 07/08/25
Daily bite-sized proptech and property news in partnership with Proptech-X.
Interest rates cut to 4%, inflation expected to rise to the same figure
The Bank of Engaland after two ballots approve 0.25% cut in rate to 4%, but inflation is double target figure
In what is the fourth rate cut since Labour came into power the Bank of England’s monetary policy committee, decided after two rounds of voting to reduce the rate by 0.25%. With a prediction that the underlying rate of inflation is likely to rise from 3.75% to 4% in the coming months.
Whilst lower rates traditionally help some industries such as residential sales, as the cost of borrowing and re-mortgaging is cushioned – the sad reality is that in August 2025 everything is just so expensive and the increase in employers’ NIC contributions is fuelling job cuts and putting businesses on the edge or over the edge.
Unfortunately Rachel Reeves is doing nothing to create a climate where business can thrive and the SME’s of the UK are just being hounded, which will do little to swell the treasury coffers.
The Bank of England look to keep inflation at 2%, and whilst 3.75% is far better than the 11% plus high point under the Conservative government, it is the crippling cost of living that is making most people I speak with a misery. When Rachel Reeves hits the nation with her Autumn statement, which hopefully will be the last piece of damage that she inflicts on the economy before she is re-shuffled out of the door, the bigger economic question becomes just what is the PM’s strategy to get the working man working and incentivising the entrepreneurs who underpin the wealth structure of the nation to feel they have a stake in a Labour led economy.
Never in my sixty years have I seen a government with such a sweeping majority, fail to deliver on every level, it would be hard to conceive a worse run government, and if we look at housing the deputy PM’s area of expertise, we see that new home delivery has stalled rather than producing the mythical 300,000 new units a year.
I am not being partisan the previous government who deposed their PM and then had a flurry of new ones failed, but I had expected that Starmer coming to power with such a large mandate would have used this to grow the economy and keep the status quo, instead we have been plunged into the usual 10 year, vanity projects that will deliver the poor of the nation and the working man a brighter future, the sad reality being that the cost of these ideologically driven state planned pipe dreams will mean higher taxes with no delivery of any of the benefits when they exit power, which might as is typical be after just one term.
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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