Following a hold in March, the Bank of England has today announced a reduction in the base rate to 4.25%. This decision follows a period of relative stability in inflation, which fell to 2.6% in March 2025—still above the Bank’s 2.0% target, but a notable improvement. The Monetary Policy Committee voted 7-2 in favour of the cut, a move widely welcomed across the property industry.
Bradley Post, Managing Director of RIFT, commented:
“A second consecutive base rate cut this year will be welcome news for borrowers, especially households still feeling the effects of the cost-of-living squeeze. While this may ease the burden on mortgages and other finance agreements, it’s less favourable for savers, who will see lower returns on their savings pots.”
Stephanie Daley, Director of Partnerships at Alexander Hall, said:
“Mortgage activity has remained consistently strong since interest rates stabilised, and a second rate cut will only increase market confidence. Lenders have already been responding positively, with rate reductions across all loan-to-value bands for both residential fixed-rate and buy-to-let products. Sub-4% rates have returned, and the number of low-deposit mortgage products is now at its highest in 17 years – great news for first-time buyers hoping to get on the ladder sooner.”
The Bank of England’s decision to cut the base rate to 4.25% is a promising step for the property market. As estate agents, we expect this to drive renewed buyer confidence and increase demand – particularly among first-time buyers and those looking to upsize. With mortgage rates already beginning to fall and more competitive products hitting the market, this shift creates the conditions for a more active and accessible marketplace heading into the second half of the year.
Source: Property Notify edited by Perry Brown for readability.