The Monetary Policy Committee’s decision to hold the base rate at 4% is the latest in a series of disappointments, says Auction House.
On the 18th September, the Monetary Policy Committee broadcast their decision to hold the base rate at 4%. Given that inflation has remained stagnant, and well above the 2% target, this decision was not wholly unexpected. However, it has disappointed hopes for a reinvigorated property market.
The current pause in base rate follows five reductions made since August 2024, with the latest cut occurring on the 7th August 2025. However, these decreases have failed to increase affordability for buyers, which has pushed down average house prices and stagnated the broader market.
“This has been the story of the year, with sticky inflation holding back market activity,” commented Oliver Prior, National Commercial Director of Auction House. “This is a consequence of the government’s fiscal agenda, which has led to flatlining growth and, over the last five years, a reduction in property values.”
He added: “Maintaining base rate at 4% will fail to restore confidence in a market that has been rocked by rumours of proposed property taxes. The reality of these taxes will not be revealed until the Autumn Budget, which means that property buyers and sellers will operate in a market filled with uncertainty until late November.
“This will continue to inhibit activity, particularly in London and the South East, which will be most affected by any tax rule changes.”
Given the current inflation landscape, it is now possible that no further cuts to base rate will be made this year.
However, the auction sector of the property market has proven to be very resilient, even in these challenging times. Auction House recently celebrated a record-breaking summer for its weekly national online auction. In August, they hosted their largest ever weekly event and raised a total of £10,811,201 over the month, a remarkable result for a period that typically sees declining activity.
“Property auctions are excelling while other routes to sale stall,” said Oliver Prior. “This is because auctions provide two crucial things in an uncertain market: speed and security. The short timeline between exchange of contracts and completion, which is typically 28 days, gives both buyers and sellers much-needed reassurance.
“As we enter an unpredictable autumn, these advantages will continue to appeal to those looking for speed, transparency and simplicity.”
Find out more about Auction House
If you’d like to learn more about selling your property or land at auction, you can book a free, no-obligation valuation on the Auction House website. Buyers can also visit the site to view all the properties currently available.
