Bank of England holds interest rates at 3.75%: What this means for advisers and their landlord clients

“Today’s decision to hold Bank Base Rate at 3.75% underlines just how difficult the current environment is for the MPC. In most cycles, it’s possible to get a fairly clear sense of the likely direction of travel ahead of the announcement, but this time it has been far less predictable. That reflects the complexity of the situation, particularly given the geopolitical risks we’ve seen emerge since March and the challenge of trying to future-proof policy against those uncertainties. With the announcement last week that inflation has risen to 3.3, and expectations that it could move higher in the months ahead, it’s understandable the Bank has continued to wait and assess.

“In the buy-to-let market, we have seen some welcome stability return to product pricing in recent weeks, but it would be unwise to assume this will continue uninterrupted. Swap rates remain volatile and are highly sensitive to wider economic and political developments, which makes consistent pricing difficult for lenders. Advisers and landlord clients therefore need to remain alert to changes and be ready to act when opportunities arise, particularly in a market where conditions can shift quickly.”