The Bank of England has today held interest rates at 3.75%, signalling a pause while policymakers assess the next move against an increasingly uncertain backdrop.
Inflation currently sits at 3.3%, still above the Bank’s 2% target, and ongoing global tensions, particularly in the Middle East — continue to influence economic sentiment, energy prices and overall market confidence.
For now, the Monetary Policy Committee has taken a cautious, wait-and-see approach, opting for stability rather than immediate change. However, guidance from the Bank suggests that further increases cannot be ruled out, with policymakers prepared to act if inflationary pressures persist.
What This Means for the Property Market
While today’s decision doesn’t remove uncertainty, it does remove immediate pressure – and that matters.
There are clear signs that the property market remains resilient beneath the surface:
- Buyer demand is still present, albeit more considered
- Lenders continue to compete, with some adjusting rates
- Transactions are progressing, reflecting underlying confidence
At the same time, the market has become highly price-sensitive, with buyers taking a more measured approach while affordability remains under scrutiny.
The Adkins View
From what we are seeing on the ground, this feels like a moment of stability rather than slowdown.
Yes, buyers are more cautious – but they are still moving when the right property is correctly priced. That hasn’t changed.
Today’s hold gives the market breathing space. If wider global conditions begin to settle, we would expect confidence to strengthen again, and with it, activity.
Adkins Property – moving you every step of the way.
