The Bank of England Cuts Base Rate: What It Means for the Richmond Upon Thames Property Market

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A Timely Boost for a Cooling Property Market

In national and local property terms – including the Richmond market – today’s rate cut arrives at a useful time. The Royal Institute of Chartered Surveyors (RICS) reported this week a notable cooling-off in sales activity. Their data shows a net balance of -37% for buyer demand in April, indicating a significant drop. This has translated into fewer agreed sales.

RICS points to the end of the stamp duty holiday as a major factor, but it’s clear that increased living costs, broader economic uncertainties, and higher mortgage rates are also contributing. Mortgage rates aren’t historically high – as those of us who’ve been around know well – but they are elevated compared to the prolonged low-rate period from 2008 to 2022.

For homeowners coming off 3-year fixed rates from 2022, today’s news offers some reassurance.

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‍The Property Market in Richmond Borough

Here In Richmond, Teddington, and Twickenham, we’ve seen similar trends. Activity has slowed since the end of March.

I expect this rate cut will reignite interest among some buyers – though I also believe this won’t be the only cut we see this year. Many experts anticipate three or four cuts in total. Personally, I consider a 3.75% base rate by year-end likely, with some even forecasting 3.5%.

This outlook is leading some borrowers to choose Tracker Rate mortgages over locking in fixed terms.

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‍Impact on Mortgage Rates and Affordability

A lower base rate generally encourages reduced mortgage rates, easing borrowing for buyers. Lenders have already been cutting product rates recently, with some dipping below 4%.

Today’s rate cut may help solidify those reductions, or even encourage lenders to go slightly further. However, I expect only modest decreases from here – so the real takeaway is that sub-4% rates may become more accessible and stable.

First-time buyers and upsizers stand to benefit most. More manageable monthly payments could help compensate for the loss of the stamp duty break.

For the Richmond Borough – where prices have risen roughly 6% year-on-year (ONS, Feb) – improved affordability could entice a new wave of buyers into what’s viewed as a safe, desirable market.

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Seasonal Considerations

With summer approaching, activity often slows due to events and holidays. The Spring market tends to be the most active, but Q2 has underperformed following the end of the stamp duty holiday.

Today’s base rate cut might soften or reverse that seasonal trend, stimulating renewed buyer activity and restoring some momentum to the market.

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Looking Ahead

For homeowners and buyers in Richmond upon Thames, today’s news is encouraging – but, as always, it’s wise to proceed with informed optimism.
Wider economic factors, especially international trade dynamics, remain influential.

If you’re considering buying or selling, now may be a great time to engage with the market. At Bartlett and Partners, we’re here to offer advice, insight, and hands-on support tailored to you – whether you're active in the market now or simply exploring your options.

Even if you're not ready to move or buy yet, it’s worth having a conversation – and if you need a recommendation for a mortgage broker or financial advisor, I’m happy to help.

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