Industry Reacts to Bank Rate Cut
Nathan Emerson, CEO of Propertymark:
“Today’s news will no doubt be extremely welcome for many, especially given current economic uncertainties. International bodies have recently stated they expect interest rates to fall in the UK as the year progresses. Overall, we hope to see interest rates further continue their downward trajectory over the course of 2025.
“The UK housing market has recently been buoyed by Stamp Duty threshold changes leading up to the start of April, and with the busier spring and summer months now here, this base rate reduction should attract even more buyers and sellers to the market and provide greater affordability.
“Housing is a central part of the UK economy, and we now hope to see considering the UK Government and the devolved administrations have shown a keen focus on housing growth, is that they look ahead to achieving their individual housebuilding targets to meet growing demand.”
Daniel Austin, CEO and co-founder at ASK Partners:
“The Bank of England’s modest rate cut underscores the delicate balancing act it faces amid global uncertainty, Trump-era trade tensions, and the UK’s impending tax reforms. While the move signals a step toward monetary easing, the real impact depends on how quickly lenders pass on the change through lower mortgage rates and whether this trend endures. For homeowners and buyers, the desire for more affordable borrowing is clear, but fixed-rate mortgages remain stubbornly high, suggesting any short-term relief may be modest. However, a more predictable rate environment could help rebuild buyer confidence, especially among those waiting for greater clarity.
“For investors and developers, the trajectory of interest rates remains crucial. Even today’s modest cut will significantly impact those managing large debt loads. Resilient demand in high-growth segments like co-living and build-to-rent continues to attract capital despite ongoing supply constraints. With the UK facing potential political and fiscal change, real estate players must stay agile. Should further rate cuts materialise, we could see a stronger recovery in both deal activity and investment flows. Until then, uncertainty persists, and smart, forward-looking financial planning remains key to navigating what’s next.”
Darrell Walker, group sales director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries:
“This latest reduction to the base rate is another step in the right direction. As borrowing costs ease, we expect to see investor activity increase – particularly as the data so far this year has pointed towards a stable and growing market. This cut should deliver a further confidence boost and stimulate broader market momentum, even if some buyers do opt to sit tight until further base rate cuts arrive.
“Now, as demand picks up, it’s more important than ever that brokers and borrowers can collaborate with lenders who can offer efficient processes, fast decisions and clear communication. In a more competitive landscape, speed and service are everything – lenders must be prepared to provide both, in equal measure.”
Alpa Bhakta, CEO of Butterfield Mortgages Limited:
“The Bank of England’s second rate cut of the year comes at an ideal time. Activity levels in the prime central London (PCL) market improved steadily throughout Q1, and with borrowing costs remaining the most significant driver of sales, today’s reduction should further reinforce the momentum and confidence permeating the property sector. Continued support from lenders for borrowers and brokers alike will be key in ensuring the market fully capitalises on a more supportive monetary environment in the coming weeks.”
Paresh Raja, CEO of Market Financial Solutions:
“The markets inked in this base rate cut several weeks ago, with many lenders having already dropped rates over the past fortnight. As a result, today’s decision might be met with a somewhat muted response. But we should be careful not to take another 0.25% reduction for granted; rates are trending in the right direction and borrowers will welcome every cut.
“With more rate cuts expected in the months to come, some property buyers and investors might decide to bide their time. But there’s an overwhelming sense that demand is returning to the market thanks to the increasingly favourable interest rate environment. Coupled with the usual seasonal trends we see, we’re expecting the summer months to be a busy period, and the focus from lenders has to be on fast, decisive action – giving brokers and borrowers clarity on product availability and rates, along with prompt decisions on applications, will be crucial in allowing the market to flourish.”
Tim Parkes, CEO of RAW Capital Partners:
“The only real question today was seemingly whether the Bank of England would be so bold as to vote for a 0.50% reduction. For now, the Bank is clearly sticking to a conservative strategy and, while there is pressure for more significant cuts, the broader expectation is still that there could be as many as four more base rate cuts from the Bank’s five remaining meetings this year.
“We are on the right path, even if the speed of travel is not fast enough for some. The base rate is now a full percentage point lower than the recent 5.25% peak we saw for much of 2023 and 2024. If indeed the base rate does continue to fall to 3.5% or even 3.25% by the end of this year, it will likely encourage many more property buyers and investors to enter the UK property market. Transactional activity and house prices could both see an uplift as a result, particularly as mortgage lenders reprice their products to reflect the medium-term predictions of a steadily falling base rate.”
Sarah Thompson, Managing Director at Mortgage Scout:
“The Bank of England’s decision to cut the base rate today is a timely and much-needed boost for borrowers. After a prolonged period of high interest rates, this shift should help ease affordability pressures and unlock more movement from first-time buyers and homeowners. We’re already seeing signs of renewed confidence with searches for remortgaging up by 34% in Q1, according to Legal & General, as borrowers look ahead to what rates might be when their current deals come to an end. At the same time, several lenders have recently increased their income multiples, further improving affordability and opening up more options for borrowers.
“With around 1.8 million fixed-rate mortgages due to mature by the end of 2025, today’s rate cut offers some welcome relief – but it’s just the start. If rates continue to fall towards the predicted 3.5% by year-end, we expect even greater momentum to build across the market.
“Equally significant is the FCA’s announcement yesterday, following its open letter to the government in January calling for a more growth-focused regulatory approach. The FCA has now confirmed plans to launch a formal consultation in June, aimed at making it ‘easier, faster, and cheaper for borrowers’ to make changes to their mortgage. This is a vital step towards a more flexible and responsive lending environment. Together, these developments send a clear message: the market is beginning to shift back in favour of borrowers.”
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