In the midst of Hanukkah and just a week away from Christmas, we might just have received a particularly exciting festive gift. Not delivered by any of the usual suspects, though; delivered, in fact, by the Bank of England…
Just a couple of weeks from the start of 2026, after a year plagued by poor economic results, homeowners, property purchasers and indeed estate agents are revelling in the news that the Monetary Policy Committee voted to cut the Bank of England base rate to 3.75%.
If you have been following our articles over the past few weeks, you will know that this cut came as no surprise to us!
Unfortunately, due to several less-than-rosy economic indicators, from rising unemployment to a contracting economy, we had expected a cut – if nothing else, to boost economic activity. Here’s a snapshot:
The final piece of the jigsaw fell into place just a day before the Monetary Policy Committee met – but this time, it was a little bit of good news: that inflation had fallen from 3.6% to 3.2%, having dropped from 3.8% the previous month.
At that point, a rate cut felt like a sure thing.
And from a property market point of view, it brings more than just a glimmer of hope, just in time for the New Year.
Despite underlying economic concerns, and after a tough slog of a year, the market finds itself in an oddly positive position as we head into 2026.
There are a few reasons that point to why:
The rate cut itself has some obvious positive implications for the property market. But there’s a little more on top of just that to add into the mix.
The rate cut comes just as the market has ramped up following the Budget on November 26.
The pause button had been pressed, with market activity stifled since the summer, and an autumn defined by uncertainty caused by pre-Budget leaks. These hinted at tax rises that could cripple the market, as well as stamp duty relief that buyers would benefit waiting for – a perfect storm.
As it transpired… nothing transpired!
Or at least, not too much.
Here in North London, we clearly can’t belittle the impact that the so-called mansion tax will have on plenty of households with properties worth over £2 million - from 2028 especially… but overall, it could have been worse: firstly, because the levy is limited to £2,500 - £7,500 per year depending on value aove £2 million, and that levy could well have been greater; secondly, because the rumours had suggested it was coming in for properties over £500,000, which would have covered a significant section of the local market.
Once the reality became clear, with neither real shocks nor any stamp duty sweeteners in the end, the market immediately sprang back to life: we are set to experience a busy December, once all the figures are counted.
For anyone thinking of selling a property, the early new year is shaping up to be an opportune moment.
Those ready to go on the market now or in the early New Year will be perfectly placed to exploit the swell of buyer optimism and activity that we are already seeing and expect to see more of.
As we look ahead to 2026, the combination of lower rates and increased market activity should make for a vibrant first quarter. If you’re considering selling or purchasing a home, now really is an ideal time to act!
Whilst economic indicators might suggest caution, public sentiment tends to win the day. This cut to the Bank of England base rate offers a much-needed boost for homeowners and prospective buyers alike.
The upcoming weeks and months will provide unique opportunities for the North London property market, making it a great time to start planning your next move.
The holidays are here, but that doesn’t mean we are out of bounds.
If you are planning a move in Edgware or elsewhere in, get in touch, and let’s begin a conversation about your potential move and what you want to achieve from it – and of course, arrange an up-to-date valuation of your own home.
We are required by law to conduct anti-money laundering checks on all those selling or buying a property. Whilst we retain responsibility for ensuring checks and any ongoing monitoring are carried out correctly, the initial checks are carried out on our behalf by Lifetime Legal who will contact you once you have agreed to instruct us in your sale or had an offer accepted on a property you wish to buy. The cost of these checks is £60 (incl. VAT), which covers the cost of obtaining relevant data and any manual checks and monitoring which might be required. This fee will need to be paid by you in advance of us publishing your property (in the case of a vendor) or issuing a memorandum of sale (in the case of a buyer), directly to Lifetime Legal, and is non-refundable. We will receive some of the fee taken by Lifetime Legal to compensate for its role in the provision of these checks.