In a move set to offer relief for households and stimulate market activity, the Bank of England has cut interest rates for the fifth time in a year, bringing the base rate down by 0.25% to 4% – the lowest level in over two years.

While the decision was a close call – requiring a second vote to break the tie among policymakers – it highlights a continued shift towards more supportive monetary policy in response to sluggish economic growth and persistent inflationary pressures.

Positive News for Buyers and Sellers

For many homeowners and buyers, this rate cut is more than just a headline – it’s money in your pocket.
A household with a £140,000 variable mortgage could see a saving of around £30 per month. Over the course of a year, that’s over £350 in reduced repayments – a helpful boost in today’s cost-conscious climate.

Lower interest rates mean cheaper borrowing, which can improve affordability for buyers and make property purchases more accessible. For sellers, this uptick in demand is a positive signal, as more motivated buyers begin searching for homes with renewed confidence.

Inflation Concerns Persist

The Bank has warned, however, that inflation could rise again in the short term, with higher food prices expected to push the rate to around 4% by September. While this may slow the pace of future rate cuts, Governor Andrew Bailey reiterated that the direction remains downward – just cautiously so.

“We’ve cut interest rates today, but it was a finely balanced decision,” said Bailey. “Any future cuts will need to be made gradually and carefully.”

What This Means for the Property Market

At Adam Hayes Estate Agents, we believe this latest rate cut provides the ideal environment for both buyers to secure competitive mortgage deals and sellers to benefit from increased activity in the marketplace.

If you've been thinking about making a move, now could be the time to act – before inflation rises further or borrowing costs change again.

Contact Adam Hayes today for expert property advice, free valuations, and personalised guidance on making the most of the current market.

Adam Hayes Estate Agents – North London’s trusted property experts.