The Bank of England has kept Bank Rate at 3.75% in a 6-3 vote, but three Monetary Policy Committee members wanted an immediate rise to 4% as the energy shock pushes the inflation outlook higher.
The decision, released on 17 September, leaves the headline rate unchanged for now. The split is the new development: three members judged that a quarter-point increase was needed, while the majority opted to wait and assess how higher energy costs feed into prices and wages.
Buy-to-let borrowers are dealing with a tighter financing backdrop even without a change in Bank Rate. The Bank says quoted two-year fixed mortgage rates are about 95 basis points higher than before the conflict began, and it reports that short-term market rates have risen further since July.
Energy prices sharpen the inflation risk
The MPC said UK CPI inflation rose to 3.1% in August and is likely to increase further over coming quarters. It now expects CPI to reach about 3.75% in the final quarter of 2026 and slightly above 4% in the first quarter of 2027, based on energy prices at 14 September.
The Bank’s decision does not mean lender pricing will stand still. Fixed mortgage pricing is driven chiefly by swap rates and lenders’ funding costs, not just the rate set at the monthly meeting. Landlords approaching a refinance should therefore judge available products on the live rate and product fee, rather than assume a held Bank Rate will bring lower fixes.
Why the 6-3 vote matters for landlord finance
The Bank said risks to the inflation outlook are tilted to the upside and more so than in July. Brent crude had reached $106 a barrel and UK wholesale gas 207p per therm by 14 September, according to the minutes, with energy costs already feeding through to motor fuel and utility bills.
That division on the Committee gives landlords a clearer warning than an unchanged headline rate alone. A future rise is not pre-announced, but the vote shows that a material minority already considers tighter policy appropriate if energy-led inflation proves persistent.
This follows Landlord Knowledge’s report on August rent and house-price data, which recorded annual private-rent growth of 3.8%. The latest MPC assessment adds a financing constraint to the picture: rental income is still rising nationally, but the cost of replacing debt remains exposed to market expectations.
The Bank also sets out its gilt plan
Alongside the rate decision, the MPC voted unanimously to reduce its stock of government bond purchases to zero through a multi-year plan. The remaining stock is due to unwind at an average annual pace of £46 billion by the end of 2034, including annual sales of £20 billion and maturing gilts.
The immediate landlord concern remains mortgage pricing. The next scheduled Bank Rate decision is 5 November, after the Autumn Budget on 28 October, leaving both fiscal policy and energy prices capable of moving expectations before the next MPC meeting.
What this means for landlords
- If you are refinancing soon: compare live fixed rates, fees and stress-test rental coverage now rather than waiting solely for a Bank Rate cut.
- Watch for: changes in swap rates and lender repricing before the 5 November MPC decision, particularly after the 28 October Budget.
- Bottom line: Bank Rate is unchanged, but the 6-3 vote and higher inflation forecast leave little support for assuming borrowing costs will fall quickly.
Editor’s view
A hold was the least disruptive outcome for landlords, but it is not a signal that the pressure on finance has eased. The split vote matters because landlords fund against the market’s expected path, and that path has become more expensive.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 17 September 2026
Sources: Bank of England Monetary Policy Summary and Minutes, September 2026
Related reading: ONS: Rents rise 3.8% as house prices grow 1.4%
