Bank of England turns gloomier as base rate rises to 1.75%; how will the housing market respond, asks Tom Bill
Economists question the Bank’s latest forecasts while the direction of travel for mortgage costs is less open to debate, writes Knight Frank's head of UK residential research.
Tom Bill is Head of UK Residential Research, producing reports that include Knight Frank’s flagship Prime Central London indices, the Super Prime London Insight and the London Residential Review. He has written detailed reports on London sub-markets and contributes to The Wealth Report and Global Cities report. Tom, a former Bloomberg and Reuters property journalist, is a regular media contributor on the London property market and has presented at events in Europe and the Middle East.
Bank of England bumps interest rates up 0.5% to 1.75%; warns of a recession by the end of the year
Today's rate rise is the biggest increase in 27 years, and comes as the BoE warns that the UK will be in a long recession by the end of this year.
BoE bumps base rate up to 1.25%
Britain's central bank hikes interest rates again in a bid to curb inflation.
‘There doesn’t need to be a recession to dampen the mood in the UK housing market’ – Knight Frank
Knight Frank's research team assesses what the Bank of England's slashed forecasts mean for the property market.
By Tom Bill
Companies in this article
Knight FrankMost read
Rumours suggest major London estate agency primed for sale this year
Sources say private equity investors are lining up bankers to evaluate options for a stake in one of the capital's biggest property firms.
By PrimeResi
Pre-Christmas launch pays off in St John’s Wood
£15.95mn mansion sold in just 14 days ahead of the festive break.
Shaw takes the helm at Savills
Simon Shaw has stepped up to become the property Plc's Group CEO, following Mark Ridley's retirement.
By PrimeResi
London Super-Prime Market Survey: What changed in 2025 – and what lies ahead in 2026
Non-dom exits, international bargain hunters and a raft of trophy listings reshaped the £15m-plus sector over the last 12 months, reports Beauchamp Estates,
PCL homes have lost a quarter of their value since 2014
But the pace of price declines eased across prime markets in the closing months of 2025, reports Savills, with signs that country houses in particular are 'starting to bottom out'.
By PrimeResi
Monday Market Review: Key figures & findings from the last seven days
Your essential back-to-school briefing, featuring data, forecasts and analysis from Beauchamp Estates, Savills, Hamptons, Lloyds Bank, Nationwide & more...
RICS names 144th president
Nick Maclean became acting president at the 157-year-old organisation las spring.
SW city leads UK house price growth rankings
London was the only region to see property values dip in 2025, as Lloyds Bank reveals localised property market divergences.
By PrimeResi
London outmigration drops to a decade low
'London leavers are moving back into familiar territory,' says Hamptons, as moves concentrate around the M25.
By PrimeResi
Housing market edged up in 2025 with prices & activity both ticking higher
Propertymark data reveals a slight improvement in buying activity compared to the previous 12 months, but also flags a rise in fall-throughs.
By PrimeResi
LATEST ARTICLES
PrimeResi’s 2026 Preview: Flat prices but ‘the strongest buying opportunity since 2008 & 2009’
Survey: Our panel of luxury property industry leaders share insights & predictions for the market in the year ahead.
By PrimeResi
US ultra-luxury market ‘white-hot’ as $100mn-plus deals boom
For the first time on record, every one of the top-10 American home sales in 2025 breached the $100mn mark - in stark contrast with London.
Carter Jonas boosts turnover to £94mn
Longstanding property firm updates on 2025 performance and five-year strategy.
CLS to sell off major SW London development site
Deal tees up another notable resi play for acquisitive developer.
Prime London buyer demand picked up in Q4 despite tax fears
The capital's high-value property market proved 'remarkably resilient' at the end of 2025, says Benham & Reeves, with buyer interest 'holding firm as we start a new year.'
By PrimeResi