Interest Rate Update: Bank of England Holds Rates
Interest Rates Held Steady – What This Means for the Property Market in Hull and East Yorkshire
The Bank of England has announced that the base rate will remain unchanged at 4.25%.
In today’s meeting, the Monetary Policy Committee (MPC) voted six to three to hold the rate, with the minority voting for a small cut to 4%. Governor Andrew Bailey pointed to global uncertainty, inflation pressures, and concerns over the wider economy—including the US and the Middle East—as reasons for the cautious decision.
Interest Rates: What’s Been Happening?
Two years ago, the base rate peaked at 5%, and average two-year fixed mortgages were around 5.35%. Since then, we’ve seen a slow but steady shift in the right direction, with a series of small reductions. In May, the rate dropped by 0.25%, and average mortgage rates moved closer to 4.39%.
While rates have held steady this time, many analysts believe further reductions are likely later this year. The MPC will meet again in August, and some are forecasting at least two more cuts before the end of 2025.
What Does This Mean for Homeowners and Buyers in Hull & East Yorkshire?
In short: more confidence. Lower interest rates have made borrowing more affordable, which is good news for homeowners looking to move and first-time buyers entering the market.
According to recent data from Hamptons, buyer demand hit a four-year high in May, with a 4% rise in first-time buyers compared to the same time last year.
At Beercocks, we’re also seeing strong interest across Hull and the surrounding villages—from family homes in Beverley and Cottingham to first-time buyer flats in Holderness Road and Kingswood.
Should You Wait to Buy or Sell?
There’s rarely a “perfect” time to move. The property market is influenced by many factors, and timing it perfectly is almost impossible. What matters more is being ready.
If you’re thinking of moving, now could be a great time to explore your options. Speak to a mortgage advisor about getting an agreement in principle so you know what you can borrow, and if you're planning to sell, arranging a property valuation will help you make informed decisions.
Ready to Take the Next Step?
Whether you’re buying your first home, upsizing for more space, or downsizing to something more manageable, our team of local property experts are here to help. With 10 connected branches across East Yorkshire, Beercocks offers full estate agency support—from valuations and marketing to sales progression.
Book a free valuation today or contact your local Beercocks branch to find out how we can help with your next move.
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