The Bank of England has confirmed that the Bank Rate will remain at 3.75%.
It is not headline grabbing news, but it is important. Especially if you are buying, selling, letting or planning a move in 2026.
Interest rate decisions shape confidence, affordability and timing in the property market. Even when rates stay the same, the direction of travel matters.
Here is what this decision means in practical terms.
Why the Bank Rate matters
The Bank Rate is the base interest rate set by the Bank of England. It is not the same as your mortgage rate, but the two are closely linked.
When the Bank Rate rises, mortgage rates usually follow. When it falls, mortgage deals tend to become cheaper over time.
That is why buyers, sellers and landlords pay close attention to these announcements, even if nothing changes on the day.
Why rates were held this time
The Bank of England is balancing two pressures.
On one side, the economy remains fragile. Growth has been weak and many households are cautious with spending. In normal circumstances, that would argue for a rate cut.
On the other side, inflation is still above the Bank’s long term target. At around 3.4%, it remains stubbornly higher than the 2% level policymakers aim for. That makes cutting rates more difficult.
Holding rates at 3.75% reflects caution rather than concern. It signals that inflation is easing, but not enough yet to justify moving faster.
What this means for buyers in Thetford
For buyers, stability is often good news.
Mortgage rates have already come down from their recent peaks, and today’s decision supports the idea that further reductions are likely later in the year rather than further increases.
Many lenders have already priced in future cuts, which is why mortgage rates have been edging down gradually rather than sharply.
If you are a first time buyer or planning a move in 2026, this creates a more predictable environment. You may not see dramatic rate drops overnight, but affordability is slowly improving.
Waiting for the perfect rate rarely works. What matters more is whether the numbers work for you and whether the right home becomes available.
What this means for sellers
What helps buyers usually helps sellers too.
Stable rates give buyers confidence to make decisions rather than pause indefinitely. As borrowing costs become more predictable, demand tends to strengthen, especially for well priced and well presented homes.
If rates do start to fall later in the spring, that often coincides with a busier period in the market anyway. That combination can work in a seller’s favour.
Pricing correctly remains the key. Interest rate decisions can influence sentiment, but buyers will always focus on value.
What this means for landlords
Landlords have faced sustained pressure over the past few years, from higher mortgage costs to increased regulation.
The fact that rates are not rising again is a relief in itself. If further cuts arrive later in the year, refinancing and remortgaging options should continue to improve.
Lower borrowing costs will not remove all the challenges landlords face, but they do help ease cash flow pressure and improve long term planning.
As ever, understanding your numbers is essential. Rate movements matter, but so do rent levels, maintenance costs and upcoming legislative changes.
Looking ahead to 2026
Most analysts still expect one or two modest rate cuts over the coming year. Nothing dramatic, but enough to support confidence and affordability.
A stable market with gently improving borrowing conditions is often healthier than a fast moving one.
If you are thinking about buying, selling or letting in Thetford, now is a sensible time to get clear advice based on your situation rather than headlines.
If you would like to talk through what today’s decision means for you, or want an up to date view on the local market, we are always happy to help.
Article by Andrew Overman | Partner | Location Location East
