Bank of England cuts base rate to 4.75%

The Bank of England today reduced the Base Rate by 0.25%, bringing it down to 4.75%—the second decrease this year. This move, alongside inflation figures now below the 2% target, brings a welcome boost to market confidence and affordability for both buyers and sellers. As we approach the end of the year, this reduction is likely to lower borrowing costs, making mortgages more accessible and supporting increased activity in the property market.

Market analysts widely expected this rate cut, which they believe will create favourable conditions for house hunters resuming their property searches, especially during what is typically a quieter period. With lower mortgage rates, existing homeowners may also find refinancing options more accessible and cost-effective.

According to LondonDom, this rate cut combined with upcoming changes to Stamp Duty rates in March 2025, is expected to fuel a busy close to the year in the property market. This period presents excellent opportunities for both buyers and sellers as they look to make the most of the current market dynamics before further fiscal changes take effect.