Yesterday’s decision by the Bank of England to hold its base rate at 4.75% has both perplexed and delighted the property industry in equal measure, comments from leading figures show.

The bank’s Monetary Policy Committee (main image) voted by a majority of 6–3 to maintain Bank Rate with three members preferring to reduce the Bank Rate by 0.25 percentage points to 4.5%.

Justifying the rate ‘hold’ the committee said: “Monetary policy has been guided by the need to squeeze remaining inflationary pressures out of the economy to achieve the 2% target both in a timely manner and on a lasting basis.

“Over recent quarters there has been progress in disinflation, particularly as previous external shocks have abated, although remaining domestic inflationary pressures are resolving more slowly.”

But what did the industry think of the decision? Here are some key figures’ thoughts.

Matt Smith, Rightmove’s mortgage expert

“In a rollercoaster year for the mortgage market, we end the year with a hold in the Bank Rate at 4.75%,” he says

“While not the early Christmas present that many would have wanted, it was widely anticipated and must be considered against a backdrop of inflation being at the top end of forecasts, and wages have increased at a higher rate than expected.

“We don’t expect any reductions in mortgage rates over the next few weeks, but as we progress into 2025, lenders are likely to look at ways to take advantage of increased demand as the busier home-buying season starts.

“As we move towards the end of the Stamp Duty reduction, lenders are also likely to look at reducing rates wherever possible.

“Next year, three Bank Rate cuts are currently planned rather than the four anticipated just a few weeks ago, highlighting how quickly things can change in the market.

“We predict average mortgage rates could trickle slowly down towards around 4.0% next year, though this is dependant on the impact of a wide variety of unpredictable factors, including geo-political tensions and inflation.”

Nick Leeming, Chairman of Jackson-Stops

“Today’s decision reflects the ongoing challenge of balancing accelerated pay growth with persistent inflation,” he says.

“This cautious approach is understandable as the Bank seeks more clarity and fiscal headroom before considering a reduction in rates. Rates rise much quicker than they fall but the Bank of England must avoid cutting too soon and undermining the progress being made on inflation.

“For the property sector, mortgage customers will continue to carefully evaluate their financial options and long-term plans. Stability in government and economic growth is essential to bolster buyer confidence, which in turn can drive increased sales and completions.”

Amy Reynolds, head of sales at Richmond estate agency Antony Roberts

“While stability in rates is welcome after months of sharp increases, borrowing costs remain high compared to the pre-2022 norm, which continues to challenge affordability for many buyers,” she says.

“For the property market, this ‘higher for longer’ rate environment means a slower pace of transactions and a greater emphasis on realistic pricing.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman

“The lack of movement in base rate is not surprising given recent increases in inflation and wages as the Bank of England wants to see some stability before taking what it thinks is risks with the economy,” he says.

“However, as far as the property market is concerned, even a small cut in base rate would be welcome not just for those on fixed-rate mortgages who are facing considerable increases in their loans when they come to remortgage but also first-time buyers who are the engine of the market, wanting to escape from high rental levels and take advantage of reduction in stamp duty before 1st April.”