The decision itself isn’t particularly surprising. In fact, most economists and financial markets had already priced in a hold.

What is perhaps more interesting is what the decision tells us about where the economy currently sits.

At the moment, the Bank finds itself caught between two competing concerns.

Inflation remains above target and wage growth is still proving more resilient than many expected. Normally, that might point towards higher interest rates.

At the same time, economic growth remains weak. Businesses are facing uncertainty, consumer confidence is mixed and there are still signs that many households are feeling the pressure of higher living costs.

Put simply, there is enough evidence to justify caution, but not enough to justify action.

For now, the Bank has decided to wait and see.

Stability, But Not Relief

For many people, today’s announcement will feel like more of the same. Probably because it is.

Borrowing costs have increased since the start of the issues in the Middle East and, even though there may well be some sort of “agreement” in the next few days, they always reduce way more slowly than they have increased.

Only a few months ago, there was widespread expectation that interest rates would continue to fall throughout 2026. However, there is little sign that a return to significantly cheaper borrowing is around the corner.

Those expectations have become far less certain and as a result we have a market that continues to sit in a period of adjustment.

What Does This Mean for Property?

The property market has spent the last couple of years adapting to a very different environment.

Higher borrowing costs have undoubtedly reduced affordability for some buyers and slowed decision-making across parts of the market. At the same time, we’ve not seen the dramatic downturn that many predicted when rates first began to rise steeply.

We have talked about confidence more times than I have seen Top Gun, and I can tell you that is a lot(!!!), but it still remains the vital missing ingredient that is essential to a buoyant housing market.

So yes, people are still moving. Yes, homes are still selling. But the difference is that decisions are way more considered than they were during the era of ultra-low interest rates. The “need to” or “have to” movers will find a way to do so but the “would like to” movers sit tight and don’t take any perceived risks.

This means that for those of us working in property every day, the biggest challenge continues to be supply rather than demand.

This is particularly true when looking for properties that need to meet specific requirements or have the potential to be adapted. Suitable properties remain limited, which means competition for the right home can still be strong even in a slower market.

The Rental Market Remains Under Pressure

Alongside interest rates, there are other factors shaping the housing market.

The Renters’ Rights reforms continue to create uncertainty, with many landlords reviewing their portfolios or exiting the market altogether.

Whether the changes made ultimately prove positive or negative remains to be seen, but in the short term, they are contributing to an already stretched rental market in many areas.

As with properties to purchase, families looking for suitable rental accommodation, particularly properties that may require adaptation, supply remains one of the biggest challenges.

That is something we continue to see first-hand.

Looking Ahead

The biggest takeaway from today’s announcement is not that rates have stayed the same.

It’s that the Bank still isn’t sure which risk worries it most.

Inflation remains above target. Growth remains fragile. Both concerns are pulling policymakers in different directions.

For now, holding rates gives the Bank more time to see how those pressures develop.

For the property market, the message is relatively straightforward: stability continues, but there is no obvious sign that cheaper borrowing is about to arrive.

Our clients emphatically fall into the “need to” move category, and this is where years of experience can help secure the right property and, just as importantly, at the right price.

If you have a client with property requirements or would just like a friendly chat about a property query, our dedicated and experienced team are always happy to help on 03330 577 0809 or at hello@plg.uk.