21 September 2023

Newsflash: Interest Rates Frozen At 5.25% By Bank Of England

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In a much-anticipated decision, the Bank of England has today announced that, after having previously raised the rate 14 times in a row, it would not be increasing the base rate at this time. BoE’s Monetary Policy Committee voted by a narrow margin of 5-4 to keep its “base rate” at 5.25% and raises the prospect that this cycle of rate increases may have peaked. This announcement carries significant implications for various sectors of the economy, including the UK property market…

A Stable Environment for Borrowers:

For homeowners and prospective buyers, the Bank of England’s decision to hold the base rate steady is undoubtedly good news. This means that borrowing costs will remain at their current, still historically low levels, providing a continued opportunity for favourable mortgage rates. With financing remaining affordable, potential homebuyers may be more encouraged to enter the market.
Additionally, existing homeowners with variable-rate mortgages can breathe a sigh of relief, as their monthly mortgage payments are unlikely to increase in the near future. This stability can provide a sense of security and financial predictability for those currently in the property market.

Opportunities for Property Investors:

Property investors are also set to benefit from the unchanged base rate. With borrowing costs low and potentially stagnant for some time, investors may find it more attractive to expand their property portfolios or embark on new ventures. This favourable financing environment could stimulate increased activity in the buy-to-let market, potentially boosting rental yields.

Market Confidence and Stability:

The Bank of England’s decision to maintain the base rate sends a message of confidence in the UK economy. It suggests that policymakers believe the current economic climate is robust enough to weather potential headwinds without the need for immediate rate hikes. This confidence can have a positive psychological impact on both buyers and sellers in the property market, fostering a sense of stability.

Caution for Savers:

While the decision benefits borrowers and property investors, it may not be as welcome news for savers. With interest rates on savings accounts likely to remain low, those relying on interest income may need to explore alternative investment opportunities to preserve their wealth and generate returns that outpace inflation.


The Bank of England’s decision to keep the base rate unchanged offers a range of opportunities and considerations for those in the property market. The continued availability of low mortgage rates, investor-friendly conditions, and market stability are all factors that will influence property transactions in the coming months.

If you’re thinking of moving, the first step is to find out how much you could achieve for your own property. Call your local branch of Hannells today to get booked in for a free, no-obligation and no-pressure valuation to find out if now is the right time to make a move!

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