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Published: 10 December 2025

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There’s growing optimism that the Bank of England will cut base rate next week, from 4% to 3.75%.

Lenders have been cutting rates in anticipation and some analysts says there’s 90% chance of a Santa rate cut to 3.75%.

Average two- and five-year fixed mortgage rates are now at their lowest levels since the start of September 2022, before the Liz Truss  ‘mini-Budget’. 

Overall product choice grew to surpass 7,000 options and the average shelf-life of a deal fell to 18 days. There has been a notable drive by lenders to expand choice on low deposit deals during 2025.

These figures come from Moneyfacts which says product choice overall rose month-on-month, to 7,054 options, close to a record-high.

It adds that the drive to support borrowers seeking higher loan-to-value deals has been evident over the past 12 months. Year-on-year deals at 95% LTV rose by 111 and those at 90% LTV rose by 155, no other LTV tier has risen by more than 100 deals year-on-year.

Average mortgage rates on two- and five-year fixed deals fell by 0.08% and 0.10%, to 4.86% and 4.91% respectively, both now at their lowest points since September 2022. 

It is the first time the average five-year fixed rate has dropped below 5% since May 2023.

The Moneyfacts Average Mortgage Rate fell to 4.91% month-on-month from 4.99%. Year-on-year the rate is down by 0.53%, from 5.44% in December 2024.

Mortgage activity led to a fall in the average shelf-life of a mortgage to 18 days. 

The average two-year tracker variable mortgage rate remained unchanged at 4.66% month-on-month but has fallen by 0.80% year-on-year from 5.46%.

The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 7.27% month-on-month, but down by 0.58% year-on-year from 7.85%. In comparison, the highest recorded was 8.19% during November and December 2023.

Rachel Springall, Finance Expert at Moneyfacts, says: “Mortgage rates continue on the downward trend and November was particularly fruitful for fixed rate cuts. 

“Year-on-year the mortgage market has seen an optimistic shift in the availability of products aimed at borrowers with a small deposit or equity, with almost 300 products added to the roster at 90% and 95% loan-to-value. The volume of deals at these tiers now rests at their highest counts since March 2008. 

“The Government has been very vocal that it wants lenders to do more to support buyers to boost UK growth, so any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.

“The improvement in cost and product availability of mortgages paints a positive picture for borrowers as we edge towards the New Year. This year has not been without a few ups and downs for rate moves and product availability, but all signs are looking encouraging for the mortgage market to thrive moving into 2026.”

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Published: 17 November 2025

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The Government’s Renters’ Rights Bill has now become law, receiving final approval from the King on Monday 27 October 2025. 

The Bill is set to transform the private rented sector bringing in new rights and responsibilities for landlords, letting agents and tenants. 

As a landlord, you play an important role in delivering these reforms and will need to understand what these changes mean for you and your business. This will ensure you can be confident that you are complying with the law and providing your tenants with a safe, affordable and decent home.

The following changes will happen on 1st May 2026. If a letting agent acts on your behalf, then they will need to follow these rules too.

• Section 21 abolished: ‘No-fault’ evictions are no longer permitted. Eviction is allowed only on valid legal possession grounds.
• Wider possession grounds: Landlords can regain a property if they need to sell, move in themselves, or house close family members.
• Most tenancies become rolling tenancies: New and existing tenancies will automatically convert to assured periodic ‘rolling’ tenancies.
• Updated tenancy requirements: All tenancy agreements must comply with the new rules.
• Renters’ notice: Tenants can end a tenancy at any time with two months’ notice.
• Rent increases: Rent may only be increased once per year.
• Rental bidding banned: Practices such as competitive bidding between tenants are prohibited.
• Deposit limits: Only one month’s rent can be taken upfront between signing the tenancy and its start date.
• Non-discrimination: Refusing tenants because they have children or receive benefits is illegal.
• Pets: Landlords must consider tenant requests to keep pets and cannot refuse unreasonably.

Other elements of the Renters’ Rights Act will take effect in later phases.

New HMO licensing scheme 

All landlords in Brent who rent out houses in multiple occupation (HMOs) will soon be required by law to hold a licence.

Following a public consultation and Cabinet approval of the scheme on 13 October 2025, landlords renting out smaller HMOs will be required to obtain a licence from 2 February 2026. 

The new Additional HMO Licensing Scheme covers smaller HMOs with three or four tenants from different households.

 A Mandatory Licence already applies to larger HMOs housing five or more people and a Selective Licence is required for any non-HMO rented property, such as a single-let or family home.

 The new scheme is designed to help ensure properties are safe, well managed, and maintained to a high standard. It aims to raise standards for renters while supporting responsible landlords who manage their properties properly.

An Additional HMO Licence, valid for up to five years, will cost £1,040 from 2 February 2026. Landlords who apply early can secure the lower current rate of £840, with licences becoming active from February 2026. 

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Published: 14 November 2025

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Applying to England only

EVICTIONS

THE CHANGE: 

An end to section 21 “no-fault” evictions.

THE DETAIL: 

Landlords will no longer be allowed to evict tenants without giving a reason. 

But they will still have rights to evict on reasons such as:

• Moving back in
• Selling the property
• Unpaid rent
• Antisocial behaviour

PETS

THE CHANGE: 

Landlords can no longer ban pets.

THE DETAIL: 

Renters can ask to live with a pet and landlords have to consider the request fairly.

CONTRACTS

THE CHANGE: 

All private rent contracts will be rolling, not fixed.

THE DETAIL: 

Tenancy agreements will be rolling month-to-month or week-to-week with no end date, which the government says will give renters more security.

Tenants can also end contracts with two months notice, rather than being locked in for longer.

 BIDDING WARS

THE CHANGE

Landlords can’t accept offers above the advertised price.

THE DETAIL: 

It will be illegal for landlords and letting agents to suggest or accept offers over the original listing.

DISCRIMINATION

THE CHANGE: 

Refusing tenants because they have kids or are on benefits will be illegal.

THE DETAIL: 

It will be illegal for landlords and agents to discriminate against prospective tenants who receive benefits or who have children.

However, landlords and agents will still be able to do reference and affordability checks before selecting a tenant.

RENT RISES

THE CHANGE: 

Landlords can only raise the rent once a year.

THE DETAIL: 

Landlords will need to give two months’ notice, and can only increase rent to “the market rate”.

If a tenant believes the amount is excessive, they can challenge the landlord at a first-tier tribunal, a type of civil court.

RENT IN ADVANCE

THE CHANGE: 

Landlords can only ask for one month’s rent up front.

THE DETAIL: 

Big advance payments are over, as landlords will be restricted to requesting one month’s rent to secure a tenancy.

This can be 28 days rent if the tenancy is less than a month.

The first phase of reforms from the Renters Rights Act will take effect on May 1 2026.

From this date, all existing and new private tenancies in England will move onto the new system.

Implementation of phase one focuses solely on tenancy reform: the transition to periodic tenancies, limits on rent in advance, a ban on rental bidding, clearer rules on rent increases via Section 13 notices, strengthened anti-discrimination measures, and new rights around pets.

All existing assured shorthold tenancies will automatically convert to the new tenancy system. All new tenancies signed on or after this date will follow the new rules, including the cap on rent in advance and the new processes for rent increases and pets.

Any Section 21 notice served before May 1 2026 remains valid until it expires (six months from service) or until the tenant vacates.

As set out in the Act, all new tenancies must have a written tenancy agreement that includes specific information to be set out by the government in secondary legislation.

Landlords won’t need to change or re-issue existing written tenancy agreements. Instead, they will need to provide tenants with a copy of this government-produced information sheet, explaining how the reforms may have affected the tenancy. 

If an existing tenancy doesn’t currently have a written tenancy agreement — because it is based on a verbal agreement or because it is a protected tenancy — landlords will need to provide the tenant with a written document that covers the required information.

Further phases of the Act will follow:

• Phase Two (late 2026): Landlord Ombudsman and new PRS Database

• Phase Three (TBC, consultation expected 2035–2037): Decent Homes Standard and Awaab’s Law

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Published: 06 November 2025

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The Bank of England has voted to keep UK interest rates on hold at 4% following its latest Monetary Policy Committee (MPC) meeting, with four members voting for a cut and five opting against.

The decision means borrowing costs remain unchanged as policymakers weigh signs of easing inflation against uncertainty over the government’s upcoming Budget.

Prices across the UK economy rose by an average of 3.8% in the year to September — almost double the Bank’s 2% target, but slightly below the 4% rise many economists had expected.

While inflation is moving in the right direction, the Bank said it was not yet ready to reduce rates, preferring to wait for more clarity on how Chancellor Rachel Reeves’s Budget on 26 November could influence growth and spending.

However, the latest data and tone from the MPC have raised expectations of a potential rate cut in December, if inflation continues to ease and the economy shows further signs of slowing.

Industry response:

Nick Leeming, chairman of Jackson-Stops: “The decision to hold interest rates at four per cent reflects the Bank of England’s need to stem inflation with ongoing caution towards economic growth. This wait and see position is one familiar with many homebuyers at the moment, keen to know what the Chancellor’s final decisions are on tax and spending policies before committing to a move.

“However, this might have been an opportunity missed by the Bank of England’s rate setting committee, in which a 25 basis points drop would have given the lending market a much-needed boost during this November lull. If budget tax rises harm growth, we may see interest rates cuts being used in the future to support greater market movement.

“Earlier this week lenders hedged their bets on a rate cut, with Nationwide reducing mortgage rates by up to 0.25 percentage points, offering the lowest two-year fixed rate since 2022. Moves such as this will be welcome by the mortgaged majority, with the hope they won’t be short lived. Some mortgage rates remain more than double the level they were before the pandemic, with house prices rising 26%* during the same period.

“The slow pace of building is also a concern, with chronic undersupply keeping house prices high. Inflated costs and interest rates are impacting growth in the development sector, especially SMEs, leaving government targets unmet. Greater financial headroom may have been a welcome boost to those struggling to make the numbers work.”

Matt Smith, Rightmove’s mortgages commentator: “Ahead of one of the most widely anticipated and discussed Autumn Budgets of recent times, it was unlikely the Bank would go for another interest rate cut so close to the announcement and has opted for stability instead. There’s still a good chance of a rate cut before the end of the year, depending on what is announced in a couple of weeks’ time, and if not then we’re looking at early 2026.

“Some good news is that the cost of financing mortgages has actually come down in recent weeks. We’ve started to see some lenders become more competitive in certain segments of the mortgage market in recent days, and offer some headline-grabbing cheaper rates, as they look to secure some final business before the end of the year.

“The average two-year fixed mortgage rate is now 4.44% – down from 4.95% at this time last year. The downward trend is good, but mortgage rates have come down more slowly than many were predicting at this time last year. Rates have come down even more slowly for five-year products. With the uncertainty surrounding how the upcoming Budget will impact people’s finances, another rate cut soon followed by some notable reductions in mass-market mortgage rate products would be a big boost to home-mover sentiment and affordability." 

Frances McDonald, director of research at Savills: “Today’s narrowly decided decision signals that policymakers remain broadly cautious as they await clearer signs that inflation is firmly under control.

“Although the pace of interest rate cuts has been slower than expected, they will still play a key role in stimulating demand and supporting house price growth over the next five years.

“Combined with more relaxed mortgage rules – which allow some buyers to borrow a larger multiple of their income – and a materially stronger UK economy beyond 2026, we expect renewed upward pressure on house prices. Our latest forecast predicts that UK average house prices are set to rise by 22.2% by 2030, with annual growth peaking at 5% in 2028 and 5.5% in 2029.

“Ahead of the next rate decision, all eyes will be on the upcoming Budget and how the financial markets will respond. However, we expect any announcements from the Treasury to have a more pronounced impact on prime values and transactions than on the broader mainstream market.” 

Kevin Shaw, national sales MD, LRG: “No one will be surprised that the Bank of England has chosen to hold interest rates. With the Budget less than three weeks away, perhaps the Bank sees the need for some stability. And it would have been a brave move to change course in such a situation.

“There’s been so much speculation around the 26 November Budget that it’s taken on the status of a political event as well as a fiscal one. The last time we saw something of similar magnitude was the general election of July 2024. Back then the Bank also opted for caution despite the data signalling the need for a base rate reduction. It’s clearly sticking to the same approach.

“The Bank’s reasoning is sound. Inflation has remained stubbornly at 3.8% for two consecutive months – not something to panic about, but not yet at the target level at which to relax either. With so much depending on what the Chancellor unveils later this month, holding steady is the least disruptive choice.

“For the property market, today’s decision means continued stability for buyers and sellers.

“Perhaps on 18 December, when the Monetary Policy Committee next meets, with political uncertainty out of the way and inflation data moving in the right direction, we may see a reduction …well timed for Christmas.” 

Nathan Emerson, CEO of Propertymark: “Following four rate cuts since August 2024, today’s decision to hold interest rates reflects the Bank of England’s cautious approach in an uncertain economic climate. Stability can be reassuring for the housing market, giving buyers and sellers a clearer sense of direction after months of volatility.

“However, for many, affordability remains stretched, and the market would benefit from further easing when conditions allow. Sustained rate stability or a gentle reduction in the months ahead would help bolster consumer confidence and keep transactions moving.” 

Simon Capp, head of residential sales, British Land: “The decision to hold interest rates is disappointing, especially given the better-than-expected inflation figures in September. While there has been a flurry of activity following the summer months, a decision to cut the rate today would have given the residential market a welcome boost as we head into the typically slower Christmas period, especially given heavy speculation in the lead up to the autumn budget. Despite market headwinds, quality central London residential property is a robust commodity. From our sales data we see an ongoing predominance of purchasing activity from owner occupiers, seeking long-term ownership.” 

Andrew Lloyd, MD at Search Acumen: “Today’s decision to hold interest rates at 4% reflects the Bank of England’s continued caution in balancing growth against inflation, that, while stable, remains elevated at 3.8%. Stability in borrowing costs is welcome, particularly as the market awaits the Chancellor’s Budget later this month, but holding rates steady will do little to reinvigorate activity across the property market in the short term.

“The government is consistently missing its housing targets, where an interest rate cut would have been a major boost to help UK developers reduce borrowing costs, stimulate buyer demand, improve project viability, and increase developer confidence. Lower financing costs to ease these margins, particularly with smaller housebuilders, could have been a real win at a particularly vulnerable time for the sector.

“Looking ahead, for real estate investors, dealmakers, and lenders alike, confidence will depend on clear signals from both monetary and fiscal policy. The Budget could be that signal, but until then the cautious ‘wait and see’ mindset of many market participants is likely to persist. If inflation starts to move downwards, we could see further monetary policy easing later this year, which, paired with political stability and renewed investor appetite, would help unlock a more active property market heading into 2026.” 

Nicholas Mendes, head of marketing, John Charcol: “The Bank of England has kept Bank Rate at 4.0%, choosing patience over pre-emption. Inflation is falling faster than expected, with CPI at 3.8%, wage growth easing, and the labour market clearly softening. However, the Monetary Policy Committee has opted to wait for the Chancellor’s Budget later this month, where up to forty billion pounds of tax rises could alter the balance between growth and inflation.

“It is a pragmatic decision by the Bank, knowing that tighter fiscal policy could do part of its job for it, pulling inflation lower in 2026 without the need for another rate cut now. For the moment, policymakers appear comfortable that monetary policy is restrictive enough and that disinflation is well established across the economy.

“Holding steady also gives the Bank time to test whether the current slowdown is temporary or something deeper. Consumer spending remains subdued, business investment patchy, and mortgage approvals are only just starting to recover. By waiting, the Bank can see whether underlying momentum stabilises through winter before deciding whether to ease in the new year. For borrowers, it is a sign that while we are past the peak, the Bank is determined not to move faster than the data justifies.”