Following the Bank of England’s decision to maintain the base rate at 5.25%, Nick Leeming, Chairman of Jackson-Stops, comments:

“The Bank of England has held firm with today’s decision, keeping a steady head and refraining from increasing rates, instead opting for a ‘higher for longer’ strategy to continue to drive down inflation. The steadier approach is welcomed by the market, avoiding spikes in payments and giving consumers a clearer pathway to be able to plan accordingly. This comes at a time where the holiday period will put consumer spending into the spotlight, where often affordability will be the lasting remark.    

“Currently the market is not expecting a fall in rates for some time, with the Bank of England’s next few moves reliant on the UK economy continuing to avoid a recession. When it comes to property despite challenging headwinds, a resilient labour market and consistent demand has led to a market rebalancing rather than a fall. Positively, the wider property market is set to outperform forecasts from this time a year ago, proving its steadfast resilience once again, despite higher mortgage rates.  

“Across our national network of estate agents, we are seeing buyer behaviour being driven by the right property in the right location, more so than any other defining factor. While local nuances are emerging due to supply levels, competition for prime homes that strike the balance between greater space and good connections will continue to drive activity and underline market confidence.”