The decision to hold the base rate at 3.75% comes from a unified Monetary Policy Committee and signals just how uncertain the economic outlook has become, says the national property auctioneer.
The Bank of England’s Monetary Policy Committee (MPC) voted unanimously on 19th March to hold the base rase at 3.75%, ending weeks of speculation about a potential cut. Until recently, a reduction had been widely anticipated, a move that would have brought fresh confidence to a spring property market already showing signs of momentum. That prospect shifted sharply with the escalation of conflict in the Middle East and the effective disruption of the Strait of Hormuz, through which approximately a fifth of the world’s daily oil and gas supply passes. The resulting spike in energy prices has pushed inflation expectations significantly higher, with some analysis now forecasting CPI could approach 4% by the end of 2026.
Commenting on the announcement, Managing Director of Auction House Oliver Prior said: “What’s significant here isn’t just the hold; it’s the unanimous decision of the MPC. The fact that all members were in agreement tells us a lot about the size of the threat to the economy. In the last few meetings, the members have been split on what move to make, but the conflict has inspired them all to adopt caution. This means there is also a possibility that they may vote to raise rates in the future.
“The BoE is navigating real tension: growth is stalling, unemployment is climbing, and there’s a strong case for cutting to stimulate markets. But with inflation being pushed upward by energy costs, they simply can’t risk it yet. The result is a property market that’s neither advancing nor retreating.
“For auction, instability and a breakdown of confidence can lead to and uptick in activity. Motivated sellers need certainty and our online, livestream and in-room auctions draw a different kind of buyer - cash bridging, and those who’ve already secured finance. They’re not waiting for rates to fall. We expect strong interest from both as the lending landscape develops over the coming months.”
Oliver added: “How the conflict in the Middle East plays out will shape the economic picture, and the property market, through the rest of this year. April’s MPC meeting will be closely watched.”
About Auction House
Auction House is a national brand with a local presence. They operate across England, Wales, Scotland and Northern Ireland, holding close to 200 online, livestream and in-room auctions every year.
Despite being a nationwide brand, they pride themselves on maintaining a regional presence. With local, knowledgeable teams, they offer a truly personalised service to sellers, buyers and partners alike.
