On August 7, 2025, the Bank of England cut the bank interest rate from 4.25% to 4%. This will benefit home buyers taking out new mortgages offered at reduced interest rates. Property industry experts welcome this news as it is expected to boost home sales.
Matt Thompson, head of sales at Chestertons, commented that while some buyers are disappointed that the rate is not sub 4%, the rate cut will encourage more property purchases.
Kevin Shaw, national sales managing director, LRG, said:
“This provides renewed momentum for buyers, sellers, and developers alike.”
Steph Walker, Co-founder of TAUK says that, though lower interest rates help some property buyers, there are larger issues that need addressing, such as stamp duty and other moving costs. She wants moving house to be less stressful and more accessible.
Rightmove’s mortgage expert Matt Smith says that interest rate cuts and more generous affordability criteria are helping home movers, but he wants further bank rate cuts before the end of 2025.
CEO of The Guild of Property Professionals, Iain McKenzie, says that several additional factors support buyer confidence, including higher wages, slower house price inflation and greater mortgage availability.
“This could be the green light, and we could see a further uplift in buyer activity, transactions, and market confidence as we head towards the end of 2025.”
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