It is expected that interest rates will be cut again next week at the Monetary Policy Committee meeting on December 18th, which will be a pre-Christmas boost for millions of households and prospective property buyers.
Greater than 90% chance of rate cut
The Bank of England is widely forecast to reduce its base rate from 4% to 3.75%, and mortgage lenders have already been trimming their rates in anticipation. Money markets now imply a greater than 90% chance of a December rate cut to 3.75%.
Markets also expect two further cuts in 2026, with the possibility of a third, signalling a gradual easing cycle ahead, towards 3% in 2026.
The Monetary Policy Committee voted 5-4 to leave rates unchanged earlier this month, with BoE Governor Andrew Bailey casting the deciding vote. Before committing to a cut, he was waiting for evidence of declining inflation. It was the second time in a row that interest rates were held by the bank, which makes their decision every six weeks or so. Each time they look at the state of the economy and recent global events for the coming months. The factors considered are:
- How fast prices are rising
- How the UK’s economy is growing
- How many people are in work
Rate decision on December 18th
All eyes will now be looking at Andrew Bailey, the Bank of England Governor, who is due to speak on Wednesday. His comments will be closely scrutinised ahead of the MPC’s rate decision on December 18th.
David Phillip commented, “As we move quickly towards January 2026, this is better news for the property market. Since the budget, property movers now just want to get into next year, and January is traditionally a busy time for people wanting to buy and sell their home, so this will be a good move”.
If you are looking to move in 2026 and would like a free market appraisal, then call David Phillip FRICS on 0113 4676400
David Phillip Estate Agents, 86, Leeds Road, Bramhope, Leeds LS16 9AN
w:davidphillip.co.uk
Selling houses in North Leeds, Bramhope, Adel, Cookridge, Pool-in-Wharfedale, Otley and
Alwoodley.
