Bank of England holds the base rate at 4.75%

The Bank of England has held the base rate at 4.75%, with 6 members voting to hold the rate and 3 voting to reduce it.

The Bank of England has held the base rate at 4.75%, with six members of Bank's Monetary Policy Committee voting to hold the rate and three voting to reduce it.

The rate of inflation has risen recently, to 2.6% in November, above the bank's 2% target.

The bank's Monetary Policy Committee (MPC) said rising geopolitical tensions, the election of Trump and trade uncertainty, alongside the government's recent £40bn tax-raising budget, mean that growth is faltering, while inflation risks remain.

Three members of the nine-strong panel – the deputy governor, Dave Ramsden, and economists Swati Dhingra and Alan Taylor – preferred a 0.25% reduction in borrowing costs.

However, Andrew Bailey, the Bank’s governor, was cautious as to when the Bank might be able to announce future cuts: “We think a gradual approach to future interest rate cuts remains right, but with the heightened uncertainty in the economy we can’t commit to when or by how much we will cut rates in the coming year,” he said.

Trump's victory could have an impact on prices globally because he plans to introduce tariffs on imports, which some economists estimate could cost the UK billiions.

Meanwhile, UK retailers have also implied prices could rise while jobs could be at risk after the Chancellor, Rachel Reeves, announced a rise in Employer's National Insurance contributions in her autumn statement.

What does this mean for mortgage rates?

The base rate influences the interest rates that many lenders charge for mortgages, loans and other types of credit they offer people.

It has been cut twice in 2024, firstly in August and latterly in November.

Mortgage rates are currently sitting between 4% to 4.5% for 2- and 5-year fixes.

According to mortgage broker Mojo, which is part of the Zoopla family, the average 2-year fixed rate deal is currently 4.46% for a 60% LTV mortgage, while the average 5-year fix for the same LTV is 4.27%.

Some economists are predicting that a 6-3 split among the committee makes a future cut in interest rates more likely, when the MPC meets again in February.

However others are exercising caution, as the Bank watches how companies respond to Reeves's Autumn Statement.

Key takeaways

• The Bank of England has voted by 6-3 to hold the Base Rate at 4.75%
• However in a statement, the Bank's Monetary Policy Committee says it plans a series of gradual cuts in the future
• The base rate, also known as the 'bank rate’ or the ‘interest rate’, affects the rates that lenders charge their borrowers

by Blackstones

Homeowners live in homes for 9 years before upping sticks

Londoners stay put the longest before going on the market, while those in the North up sticks faster. Find out what's happening where you live.

UK homeowners are staying put in their homes for an average of 9 years before moving out.

In the last 18 months, 33% of homes were re-sold after their owners had lived in them for between 3 to 7 years.

The tripling of mortgage rates, fire safety issues and pandemic lifestyle changes, alongside personal reasons, are the key motivating factors behind people upping sticks to somewhere new.

Over half of sellers move within ten years

When looking at the distribution of time between moves, we find two peaks in activity, involving sellers who bought between 2005-7, and sellers who bought 3-6 years ago.

The first bump in sales activity comes from people who bought their home just before the Global Financial Crisis back in 2007.

This trend is more distinct in northern England, where house prices took longer to recover from the crisis. It took until 2017 for these homes to reach their pre-crisis price levels.

Since then, the equity gains homeowners have made has helped them to unlock their next move.

The more recent peak coincides with purchases following the Brexit referendum, as well as during the Covid pandemic.

Home moving decisions since then have been influenced by pandemic-driven re-assessment of home needs, fire safety issues and affordability challenges triggered by tripling mortgage rates

Those in smaller homes move 4 years earlier on average

Homeowners in smaller homes with one or two bedrooms tend to outgrow them quickly and don’t typically stay as long in their homes (just 9 years versus 13 years for those in larger homes).

These property types are popular among singles and young families with fast-evolving home needs who are more likely to upsize earlier than more established families.

Average number of years between sales by property size and  region

Those in more affordable regions are also more likely to move sooner.

This is evident in Scotland and the North East, two of the most affordable regions of the UK where homes cost on average £166,500 and £146,000.  

Over a quarter (28 per cent) of homeowners in these regions are more likely to sell within just five years of purchasing their home.

While mortgage rate increases have had a less pronounced effect in more affordable regions, the overall cost of moving tends to be lower in these areas making the prospect of selling more attractive for would-be movers.

Sellers in more affordable areas sell earlier

Urbanites stay put for longer

Londoners who sold in the last 18 months stayed in their home for the longest compared to other UK regions, an average of 10 years.

This is most likely due to higher house prices and higher moving costs.

Stamp duty rates in the capital are higher than anywhere else in the country, costing the average Londoner £14,230. This goes up to 15 years in Barking and Dagenham - the largest average in the country.

Elsewhere in England, we find that homeowners in areas with small towns and villages like Mid Devon, Harborough and Swale sell after the shortest amount of time, just eight years on average.

In Scotland, those living in the main cities of Glasgow and Edinburgh, as well as larger towns in southern parts of Scotland move most often, on average every seven years.

Two cohorts of sellers have dominated the market over the last 18 months - those who bought just before the Global Financial Crisis and those who bought just before or during the pandemic.

Their decisions to move have been influenced not just by personal needs, but also equity gains, affordability and buying costs.

As the market continues to settle in 2025, those considering selling should get in touch with local agents to understand the value of their current home, what demand for a home like theirs looks like and what they can afford to buy.

Key takeaways

• There have been two bumper crops of sales in the last 18 months, largely from sellers who bought just before the Global Financial Crisis in 2007 and those who bought just before or during the pandemic 2019
• Homeowners in flats are selling quicker than those in houses, with apartments going back on the market after 9 years, while houses return after 13 years
• Sellers in more affordable areas such as Scotland and the North East are most likely to sell within five years of purchasing their home, with lower moving costs unlocking more moves in cheaper parts of the UK
• But Londoners stay put for the longest: most sellers in the capital who sold in the last 18 months had lived in their homes for 10 years

by Blackstones