Latest News: Bank of England Cuts Base Rate
The Bank of England has reduced interest rates to 4%, marking its fourth cut in under a year to its lowest level in 2 years. This decision follows a previous reduction in May.
Bank of England Cuts Interest Rates to 4% – What It Means for the Hull and East Yorkshire Property Market
The Bank of England has announced a further cut to the base interest rate, reducing it to 4%, its lowest level in two years and the fourth reduction in under 12 months. This follows a previous cut in May and reflects growing confidence in the UK’s economic outlook, with a revised GDP growth forecast of 1.25% for 2025.
For homeowners and buyers across Hull, East Yorkshire and North Lincolnshire, this will be seen as a welcome development.
Lower Rates Mean Better Affordability
While the change won’t result in an immediate drop in mortgage rates, it does mark a shift towards improved housing affordability in our region. Lower interest rates typically bring:
- Cheaper borrowing costs on mortgages and loans
- More attractive options for first-time buyers
- Opportunities for homeowners to remortgage on better terms
This increased affordability could encourage more people in Hull and the surrounding areas to make their next move, whether that’s stepping onto the ladder, upsizing, or investing in property.
Local Market Activity Remains Strong
So far in 2025, UK home sales are up 7.5% compared to last year, with 796,000 properties sold versus 741,000 in the same period in 2024. That activity is reflected locally, where we’re seeing strong buyer interest and good levels of demand.
Across Hull, Beverley, Brough, Cottingham, Hedon, Hornsea and nearby villages, there’s growing confidence from both buyers and sellers. This latest rate cut is likely to give the market another boost.
Mortgage Rates Will Shift Gradually
Mortgage lenders tend to move cautiously when adjusting their rates. While this cut improves the overall direction of travel, it may take time for fixed-rate deals to fully reflect the change. The good news is that this is now the fourth cut in a row, which suggests a sustained move toward more favourable conditions.
Inflation Still a Factor to Watch
The Bank’s future decisions will continue to be shaped by inflation. While inflation is expected to rise slightly over the coming months, it is forecast to ease again as we head into the end of the year. If that happens, more cuts could follow, giving further strength to the housing market going into 2026.
What This Means for East Yorkshire and North Lincolnshire
To summarise:
- The rate cut brings short-term confidence to the Hull property market
- Improved affordability could lead to increased buyer activity
- Sellers may benefit from stronger demand
- Medium-term growth depends on wider economic conditions
Thinking of Buying or Selling in Hull or East Yorkshire?
If you’re considering a move, now is a great time to explore your options. At Beercocks, we help clients across Hull, East Yorkshire and North Lincolnshire make smart decisions based on the market, not guesswork.
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