Interest rates have been frozen at 4.75% this month as inflation hit 2.6% in November, higher than anticipated. The rate was expected to be cut again, and indeed some members of the BOE voted for it, but they were over-ruled by a 6-3 majority.

The bank also indicated that any cuts in 2025 may not materialise or would be very small and gradual. This will come as a blow to home-owners and landlords who were hoping for some further easing. In particular, a significant number of mortgage holders are on fixed rates and have not yet seen the impact of the big jumps over the past few years. 

This will also have an impact on property prices and may slow down house price growth next year. For tenants in private rented accommodation, it is also bad news as many landlords have not yet increased rents in line with mortgage rate rises. 

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