This week the Bank of England announced that interest rates are being held at 3.75%. Below, Tom Cooper (Sales Manager at Knight Knox) shares his view on what this means for market confidence and for those considering investing in the property market right now:
“The Bank of England has decided to hold interest rates at 3.75%, although it was a close call with a 5 – 4 vote in favour of holding. What that means is that inflation has come down to a more acceptable level, but the Bank remains cautious as it looks at the broader economic picture.
On the positive side, it looks likely that rates will start to reduce from around April onwards. If that happens, we should see borrowing costs – including mortgage rates – become cheaper over time, reducing the incentive to leave money in cash and supporting demand in the housing market.
As mortgage costs ease further later this year, I expect to see an increase in activity and demand, which typically supports upward pressure on house prices. For anyone considering buying, whether for personal use or as an investment, this could be a timely opportunity before market activity and pricing adjust further.”
“What we’re seeing more broadly is a market that’s starting to stabilise. When rates are held and there’s a clearer sense of direction, confidence tends to improve – people feel more comfortable making decisions rather than waiting on the sidelines.
What’s also interesting is who is actually investing right now. Recent research shows that more than 3,000 buy-to-let landlords in the UK are under the age of 21, and together they’re generating over £66 million a year in rental income.
Beyond that, there are around 63,000 landlords aged between 21 and 30 actively investing in buy-to-let, which shows that younger investors are increasingly confident in property as an asset class.
At the same time, more established investors continue to play a major role. Landlords aged 65 and over earn more than £11.5 billion a year from rental property, accounting for over a quarter of all reported rental income. Overall, total rental income across the UK is around £41.4 billion annually.
Taken together, that tells me confidence isn’t limited to one age group. You’ve got new investors coming into the market and experienced landlords continuing to commit capital, which points to property still being viewed as a long-term, reliable investment.“
Tom Cooper
With over a decade of experience at Knight Knox, Tom Cooper plays a key role in driving our sales strategy and team success. As Sales Manager, he brings a wealth of industry knowledge and a genuine passion for building meaningful relationships with clients around the globe.
Tom thrives on connecting with people from diverse backgrounds, valuing every opportunity to learn from different cultures and perspectives. His approach is rooted in trust, communication, and long-term partnership.
