Bank of England Cuts Base Rate to 4%: What It Means for the Property Market
Buyer confidence climbs as borrowing becomes more affordable, FSS shares what it means for you
On 7 August 2025, the Bank of England cut the base interest rate by 0.25 percentage points to 4%, the lowest it’s been since March 2023. This marks a continued shift in economic policy and presents real opportunity for both buyers and sellers.
→ Source: AP News
At FSS Property, we’ve already seen renewed interest from buyers this week, and it’s only just begun.
Why Was the Rate Cut?
The Monetary Policy Committee (MPC) voted 5–4 in favour of the rate cut, showing some division over timing but a clear direction of travel: support the economy through reduced borrowing costs.
→ Source: Reuters
Despite this move, inflation remains above the Bank’s 2% target. Still, with inflation expected to ease later in the year, the cut is being welcomed by households and businesses alike.
→ Source: The Guardian
What This Means for You
???? Buyers:
This is your moment. With mortgage rates set to improve, affordability is increasing: especially for first-time buyers and up-sizers who were previously priced out.
At FSS, we’re already seeing increased buyer activity, stronger enquiries, and renewed urgency. If you’ve been holding off, now may be the ideal time to step forward.
????? Sellers:
This base rate change has sparked confidence in the market. Buyer activity is climbing, yet stock levels remain steady: giving you a great chance to stand out.
If you’ve been thinking about selling, now could be the time to get your property listed while demand builds.
Market Watch: What’s Next?
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Inflation is forecast to fall further by Q4 2025
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Mortgage lenders are likely to adjust rates in the coming weeks
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Further rate cuts may follow- markets are pricing in another potential reduction later this year
→ Source: MarketWatch
FSS Can Help You Take Advantage
Whether you're buying, selling or just considering your options, our expert team at FSS Property is here to help.
Need a valuation?
Want advice on buying in the current climate?
Curious how this affects your mortgage position?
???? Get in touch with us today or call us on 01423 501211 — and take the next step with confidence.