Interest Rates Held at 4.25%, But Agents Remain Optimistic About Future Cuts
The Bank of England has voted to maintain the base interest rate at 4.25%, a decision that has drawn a range of reactions from across the property industry. While some estate agents note the outcome may disappoint buyers hoping for mortgage relief, others suggest the move was anticipated given the current economic conditions.
The decision comes as inflation continues to exceed the Bank’s 2% target, currently standing at 3.4%. Despite recent progress in bringing inflation down, policymakers appear to be proceeding cautiously, signalling that more evidence of sustained improvement is needed before rate cuts can be considered.
Some property professionals have expressed concern that the continued high borrowing costs may suppress buyer confidence, particularly among first-time buyers and those looking to upsize. “A rate reduction would have sent a strong signal and encouraged hesitant buyers back into the market,” said one London-based agent.
However, others remain optimistic, viewing the decision to hold rather than raise rates as an indication that the monetary policy cycle may soon turn. “We’re likely at the peak,” said one regional agent. “If inflation continues on a downward path, the first cut could come as early as this autumn.”
In the meantime, the housing market has shown signs of resilience. Buyer activity remains steady in many regions, and lenders are already adjusting fixed-rate mortgage products in anticipation of a potential shift in monetary policy later this year.
While the decision may not offer immediate relief, industry sentiment remains broadly hopeful. As inflation continues to fall and economic conditions stabilise, estate agents believe a more favourable lending environment may be on the horizon.
