HARRISONS MARKET REACTION: Base Rate Held at 3.75% – What It Really Means for Sellers & Buyers
The Bank of England has kept the base rate at 3.75% today. No surprises there – and, frankly, no drama needed either. This was widely expected, inflation is still above target, and the Bank isn’t rushing into cuts after reducing rates in December.
Here’s the bit that matters: stability is good for the market. Buyers like certainty. Lenders like certainty. And certainty fuels confidence.
But let’s cut through the noise and get to what actually counts for homeowners in Sittingbourne, Swale and Faversham.
1. Mortgage rates are already ahead of the Bank.
Lenders haven’t waited for this decision – we’re already seeing competitive sub-4% deals across 2- and 5-year products. Affordability tests have eased slightly, and borrowing power is improving. That’s why demand has stayed strong.
2. The market locally is performing extremely well.
This isn’t theory – we’re living it. We’ve agreed multiple sales before properties even hit the portals, and achieved strong prices because motivated buyers are active and moving quickly.
3. Price stability is holding.
Despite all the national headlines, the reality here is simple: good homes, well-presented and well-marketed, are selling – and selling well. There’s no widespread discounting, and quality stock is getting premium attention.
4. A rate cut later this spring is still likely.
Markets are pricing a high probability of a reduction by early April. That could bring another lift in confidence as we head into peak spring activity.
5. The economy isn’t booming, but the housing market doesn’t need it to.
Transaction levels are being driven by real life: upsizing, downsizing, relocating, school moves, divorces, investments. Stability at 3.75% gives people permission to get on with their plans.
Our take at Harrisons
We’re already seeing excellent momentum in 2026.
Viewings are strong. Offers are strong. Buyer quality is strong. And the fact we’re securing multiple deals off-market tells you everything you need to know – the right buyers are out there and ready.
This decision keeps the environment predictable and positive. If anything, it sets the stage for a very healthy spring market.