Industry Response to Bank of England Rate Hold
The Bank of England has just announced its decision to hold the base rate at 3.75%.
This decision comes as a result of wider economic uncertainty and inflation (CPI) increasing to 3.3% in March and remaining above the Bank’s 2.0% target.
Matt Smith, Rightmove’s mortgage expert
“A Bank Rate hold is actually positive news today, particularly for those on a tracker mortgage, given a rate increase was on the table. It’s probably the most uncertain we’ve been about how the Bank will vote for a while and reflects how uncertain the geopolitical landscape is right now, and how up and down swap rates have been.
“Despite the uncertainty, lenders have been competitive where possible with moderated rate cuts to support what is typically one of the busier points of the home-moving calendar. However, margins are tight, and if swap rates increase further, we could see some of these moderated cuts from lenders either paused or even partially rolled back. What happens next will mostly depend on how the situation in the Middle East continues to play out which, as we’ve seen, can change almost daily.”
Nathan Emerson, CEO at Propertymark
“Considering current tensions worldwide, it is reassuring to see base rates held steady. For those on the property ladder or thinking of approaching the buying and selling process, today’s news brings a sense of relief across the coming months.
“However being realistic in sentiment, we currently sit in the middle of a sensitive situation where many households haven’t yet fully recovered from issues connected to the cost of living. While it may genuinely feel the pressure is still on regarding affordability, it is hoped as tensions de-escalate globally, we will proceed to a more confident footing which offers more robust levels of household affordability for consumers within the long-term journey of purchasing a property.”
CEO of Foxtons, Guy Gittins
“Following the increase in inflation to 3.3% this month, a hold on the base rate provides a welcome degree of stability for the property market. It also gives buyers greater certainty around borrowing costs when making long-term financial decisions.
The market isn’t moving at the same pace as 2025, due to the Q1 boost we experienced last year from the stamp duty holiday ending. When compared to 2024, we’re seeing a stable and improving landscape, with resilient buyer interest and viewing numbers at Foxtons up in April when compared to March 2026.”
Verona Frankish, CEO of Yopa
“The property market hasn’t stalled, it’s simply found a more sustainable rhythm and today’s decision to hold the base rate will only help sustain this measured level of momentum moving forward.
As the year progresses, we expect this steady level of activity to continue, with the prospect of rate reductions later in the year likely to provide a further boost to market confidence.”
Jonathan Samuels, CEO of Octane Capital
“Today’s decision to hold the base rate was widely expected and reflects the Bank of England’s ongoing challenge in bringing inflation fully under control.
Persistent pressures continue to limit the Bank’s room for manoeuvre and the question now is whether it can afford to be more bullish in signalling a path toward cuts.
Caution remains the priority, but without clearer forward guidance, there’s a risk of prolonging subdued activity across interest rate-sensitive sectors such as the property market, where confidence hinges on both stability and visibility.”
Chris Hodgkinson, Managing Director of House Buyer Bureau
“Another hold on interest rates is unlikely to do much to lift property market sentiment.
The market is already treading with great caution against a backdrop of economic and geopolitical volatility and, while today’s decision provides a degree of certainty, it also prolongs the current sense of inertia.
Buyers and sellers have been waiting for a clearer signal that borrowing costs are on the way down and, without it, many will continue to sit tight. As a result, this ongoing hold risks sowing further uncertainty into a market that’s already lacking confidence and it certainly won’t be enough to jump-start activity.”
Islay Robinson, CEO of Enness Global
“Today’s decision has already been largely priced into international capital flows and is unlikely to move the dial in the short term.
What continues to support appetite for UK real estate, particularly at the prime and super-prime level, is the relative value on offer when benchmarked against other global gateway cities, alongside the ongoing appeal of sterling-denominated assets.
Where the Bank’s stance does matter is in shaping currency stability and broader market confidence, with a clear and measured approach helping to reinforce the UK’s position as a safe haven for international capital, even in a higher-for-longer rate environment.”
Daniel Austin, CEO and co-founder at ASK Partners
“The Bank of England’s decision to hold rates at 3.75% reinforces the ‘higher for longer’ reality facing households and property markets. While policymakers continue to signal potential cuts later this year, the recent uptick in inflation and renewed geopolitical tensions in the Middle East underline just how uncertain the path back to target remains. Any escalation that pushes up energy prices or market volatility could easily complicate the disinflation story, leaving confidence fragile among buyers and developers alike. Mortgage pricing has improved and further easing would be welcome, but it will take time for meaningful relief to filter through to household finances and borrowing costs.
“In the meantime, mainstream housing activity is likely to remain subdued, with capital continuing to favour structurally resilient, income-led sectors such as build-to-rent, co-living, logistics, storage and data centres, where persistent undersupply continues to support demand. A clearer downward trajectory for inflation, alongside rates moving sustainably lower, would be the real catalyst for unlocking stalled projects. Until then, disciplined, income-focused and lower-leverage strategies offer investors a pragmatic way to stay active while managing risk in an increasingly uncertain macro environment.”
Tom Davies, Group Financial Services Managing Director, Mortgage Scout, part of LRG
“The decision to hold the base rate is in line with what many in the market expected, particularly given how much short-term volatility we’ve seen in recent weeks. With swap rates moving up and down in response to global events, this feels like a moment for the Bank of England to pause and assess rather than react too quickly.
“From a mortgage perspective, the headlines don’t always reflect what’s actually happening on the ground. We have seen some repricing, but these are relatively small movements and often driven by lenders managing demand as much as wider economic shifts.
“What is more noticeable is a change in borrower behaviour. Periods like this tend to bring decisions forward, particularly for those approaching remortgage. Clients are looking to secure a rate now to give themselves certainty, rather than waiting and trying to time the market.
“That approach makes a lot of sense. In a moving market, securing a rate early gives peace of mind, but it doesn’t lock you in completely. If rates improve before completion or refinance, you can revisit those options and move to a better deal. It’s about having a plan in place while keeping flexibility.
“The key message is not to get caught up in short-term noise. If the property, the lending and the monthly payments all work, that’s what matters. With the right advice, borrowers can stay in control and adapt as the market evolves.”
Kevin Shaw, National Sales Managing Director, LRG
Today’s decision to hold interest rates is the news many buyers, sellers and agents were hoping for. It does not remove uncertainty from the market, but it does remove an immediate threat.
The Bank had a difficult decision to make against an unusually unsettled backdrop. The on-off ceasefire in Iran is changing by the day and the interest rate outlook has turned turtle in a remarkably short period: just two months ago we expected two interest rate cuts; since the war in the Middle East began, two rises over the course of the year appeared a likely scenario.
The important point is that the situation looks less fragile than a month ago. Assuming the Middle East situation does not escalate, today’s hold suggests some easing of concern around the path of rates for the rest of the year. The fears of further rises being discussed in early March now feel less certain.
Ben Nichols, Managing Director of RAW Capital Partners
“There was some talk of a rate hike ahead of today’s decision, so the market will be breathing a small sigh of relief that it has held steady for now. The conflict in the Middle East has clearly added some upwards pressure to the inflation outlook, particularly around energy costs, but growth has to remain part of the conversation too. On that front, after a challenging few years, it’s encouraging to see the Bank avoid adding further pressure to the economy.
“For the property market, it also gives brokers and borrowers a bit more certainty in the short term. We’ve already seen some lenders start to reduce rates after initially pricing in more risk and, hopefully, today’s decision supports that trend and gives brokers and borrowers more confidence to move ahead with their plans.
“That said, the speed at which rates have risen since the start of the conflict has naturally affected sentiment, so lenders need to keep providing clarity and flexibility, while listening closely to the challenges brokers are seeing on the ground.”
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