So, for the sixth time this year, the Bank of England has yet again held its interest rate.
There has been copious speculation in the run-up to today’s announcement.
Inflation has risen, energy prices continue to be a source of worry, and there’s increasing talk about the uncertainty around the current rates for the future.
But as of right now, the Bank has resisted the urge to increase the base rate.
Which is a hard decision and tells us something quite important.
Not that our economy is in the clear.
Not that the rates are getting lower any time soon.
But that the bank believes there’s still time to watch what happens next.
Yesterday’s surprise increase in inflation to 3.1% has caused disruption and is much higher than the Bank of England’s 2% target.
But the bigger picture is a bit more complicated. Core inflation has remained at 2.6%, while services inflation has also remained unchanged.
Currently, expectations are growing that the UK central bank will raise the interest rate by the end of the year.
The bank is balancing two very different aspects.
Inflation is telling it to be careful.
The job market is telling it not to go too far
Currently, holding the rates allows policymakers to see which of those elements is more important than the other.
What Does This Mean for The Housing Market
For buyers, homeowners and those of us involved in property, there’s something slightly reassuring about another moment of stability.
Not because 3.75% is notably low.
It’s not.
But because certainty is valuable and for any success, stability is vital.
People can continue to make decisions about the rates we have already had, rather than the rates we hope might arrive in six months’ time.
That doesn’t mean everyone suddenly rushes into the market.
It means people can plan. And planning is what often turns a difficult property decision into a manageable one.
What Does This Mean for Our Clients?
What it does tell us is that the bank is prepared to wait for more evidence before making that decision.
And that’s important.
For the property market, it means we shouldn’t expect a dramatic change overnight.
Mortgage rates may continue to move independently of the Base rate. Buyers will continue to adjust their budgets. Sellers will continue to make decisions based on their own circumstances.
But if we eventually see a clearer path for interest rates, confidence should begin to change too.
And confidence matters for the housing market as a whole.
However, for PLG and our clients.
Very little changes.
Our experienced team of Property Finders are well trained to find the most suitable properties at the best price, especially when securing off-market opportunities.
Rates may change; the economic situation may change
But our role always remains the same.
