In response to the Bank of England’s decision to hold interest rates at 4.5%, Nick Leeming, Chairman of Jackson-Stops, comments:

“Today’s decision by the Bank of England to hold rates reflects a growing sense of ambiguity about the UK’s economic outlook. A perfect storm of slashed growth forecasts, rising inflation, possible US tariffs and UK tax increases has caused the monetary policy committee to stick instead of twist with March’s decision.

“While Labour is downplaying the likelihood of policy changes in the Spring Statement, the second fiscal update from the Chancellor could either calm the seas or rock the boat. The lack of certainty of either outcome is causing the ‘wait and see’ mindset to creep in for businesses and consumers.

“Despite the wider economic picture, this has not dampened the spirits or commitment within the property market, with the latest HMRC data showing a 14% bounce in transactions, this is a market of opportunity, not fear.

“The market remains characterised by undersupply and planning delays, continuing to give sellers the upper hand. Labour entered this Parliament with a clear ambition to deliver 1.5 million new homes within the next five years, yet planning permission approvals in England are now at the lowest level in more than a decade. Whilst Labour’s Planning and Infrastructure Bill is set to tackle the red tape, many argue that it does not go far enough to deliver the homes they have promised.”