The Bank of England has kept the base interest rate at 4% following a narrow 5–4 Monetary Policy Committee (MPC) vote, holding steady as inflation remains stubbornly at 3.8%. For landlords and property investors, the pause offers a brief moment of stability — and a hint that rate cuts may arrive before the year’s end.
Market steadies as rate hold boosts buy-to-let sentiment
The decision comes just weeks before the 26 November Autumn Budget, a politically charged fiscal moment that has left markets on edge. Analysts suggest the Bank opted for caution to avoid influencing government policy direction or unsettling financial markets.
Kevin Shaw, National Sales Managing Director at Leaders Romans Group (LRG), said:
“No one will be surprised that the Bank of England has chosen to hold interest rates. With the Budget less than three weeks away, perhaps the Bank sees the need for some stability.”
He added that the same cautious stance was taken before the July 2024 general election, suggesting the MPC is deliberately avoiding any signal that could be construed as political.
For property investors, the hold means fixed-rate buy-to-let products are likely to remain competitive for now. The past fortnight has already seen a string of rate cuts from major lenders including The Mortgage Works and NatWest, as banks anticipate lower borrowing costs in 2026.
Mortgage market poised for downward shift
Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, said the Bank’s latest move strengthens expectations that mortgage rates will continue to fall over the coming months.
“A hold means borrowers with tracker rates will have to play the waiting game, but those in the market for a new fixed deal don’t have to wait for the good news,” she said. “The fact the vote was so close will cement expectations of rate cuts sooner rather than later.”
For landlords approaching remortgage deadlines, this environment could prove beneficial. The HL Savings & Resilience Barometer shows that mortgage payments typically peak in borrowers’ early forties — a demographic that overlaps significantly with established portfolio landlords. Locking in competitive rates now, Coles advised, could shield investors from volatility if markets move unexpectedly.
Meanwhile, industry data from UK Finance shows that buy-to-let remortgaging has risen by over 12% since August, reflecting growing optimism that the worst of the interest rate cycle is now behind the sector.
Inflation stubborn, but Christmas rate cut likely
While inflation remains above target at 3.8%, economists are cautiously optimistic. Isaac Stell, Investment Manager at Wealth Club, believes the MPC’s split vote exposes deep divisions over the next move.
“Some members are clearly more concerned about a slowing economy than inflation,” he said. “With wage growth easing and GDP barely moving, the conditions for a cut are starting to line up.”
He also noted that many inflationary pressures — such as higher employer National Insurance Contributions and minimum wage rises — stem from government policy rather than monetary excess. “By holding rates ahead of the Budget, the Bank is sending a message: fiscal policy must now do its part,” Stell added.
Should inflation soften in November, analysts expect the MPC’s next meeting on 18 December could deliver the first rate reduction since 2023 — a move that would arrive just in time for Christmas.
For landlords, that would mean cheaper finance, improved cash flow, and renewed investor appetite in early 2026 — a vital tailwind after two years of tightening.
Editor’s view
The Bank’s decision to hold rates at 4% offers landlords a welcome pause, but the direction of travel looks increasingly positive. With lenders already trimming rates and political pressure mounting ahead of the Budget, a winter rate cut now feels within reach. The challenge will be ensuring that renewed demand from investors isn’t stifled by continued regulatory uncertainty.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 6 November 2025
Sources: Bank of England MPC Minutes, Hargreaves Lansdown, LRG, Wealth Club, UK Finance
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