BANK OF ENGLAND HOLDS INTEREST RATES AT 3.75% – WHAT DOES IT MEAN FOR THE PROPERTY MARKET?

Thursday September 17, 2026

The Bank of England has today voted to keep the base rate unchanged at 3.75%, marking the sixth consecutive meeting at which interest rates have been held.

For homeowners, buyers and sellers, the decision provides some welcome stability after another period of uncertainty surrounding borrowing costs and the wider economy.

However, anyone hoping that the next move would automatically be another interest rate cut may now have to wait a little longer.

Why has the Bank of England held rates?

The Bank of England continues to face a difficult balancing act.

UK inflation rose to 3.1% in August, moving further above the Bank’s 2% target. At the same time, higher and increasingly volatile global energy prices have created additional inflationary pressure.

These concerns have changed expectations around the future direction of interest rates.

While the Bank Rate remains at 3.75%, the conversation has increasingly shifted away from when rates might fall towards whether rates could potentially need to rise again if inflation remains persistent.

For now, the Bank has chosen to maintain its current position.

What does this mean for mortgage rates?

One of the most important points for homebuyers is that the Bank of England base rate and mortgage rates do not always move together.

Mortgage lenders price fixed-rate products using a number of factors, including expectations about future interest rates and movements in swap rates.

As a result, lenders have already been adjusting mortgage pricing ahead of today’s announcement.

For buyers, this means waiting for a future Bank of England rate cut does not necessarily guarantee that a substantially cheaper mortgage will become available.

Affordability also depends on much more than the headline base rate. Deposit size, household income, lender criteria and the individual mortgage products available can all have a significant impact on purchasing power.

Stability could still help buyers and sellers

Although today’s announcement does not bring cheaper borrowing costs, keeping the rate unchanged does at least provide the property market with a degree of certainty.

Buyers have now had considerable time to adjust to the current interest-rate environment, and the housing market continues to function despite borrowing costs remaining considerably higher than those seen several years ago.

For serious buyers, knowing roughly what they can afford can be more useful than continually postponing a move in the hope that rates will suddenly fall.

The same applies to sellers.

Realistic pricing remains crucial

The current market remains extremely price-sensitive.

Properties that are presented well, marketed effectively and priced realistically are still attracting interest and achieving sales.

However, where asking prices are significantly above what today’s buyers can justify based on comparable sales and current affordability, properties are more likely to remain on the market for longer.

This makes obtaining an accurate, evidence-based valuation particularly important.

The latest Bank of England decision therefore does little to change one of the most important factors in the current property market: correct pricing from the outset remains key to generating interest and achieving a successful sale.

What happens next?

Attention will now turn to the Bank of England’s remaining meetings of 2026 and, in particular, the direction of inflation over the coming months.

Higher energy costs remain one of the major uncertainties facing policymakers. If inflation remains elevated, expectations for further reductions in interest rates could continue to be pushed back.

For buyers and sellers, however, trying to perfectly time the interest-rate cycle can be extremely difficult.

Those considering a move should instead look closely at their own circumstances, affordability and local property market.

Thinking of moving in Potters Bar and the surrounding areas?

At Auckland Estates, we continue to see demand from serious buyers across Potters Bar and the surrounding areas.

With buyers increasingly focused on value and affordability, obtaining the right advice and setting the correct asking price has rarely been more important.

If you’re considering selling, moving or simply want to understand what your property could achieve in the current market, contact the Auckland Estates team for an up-to-date market appraisal.