Andrew Lloyd, Managing Director at property data firm Search Acumen said maintaining the rate “amid volatile bond markets” was “the sensible call”.
“With more housebuilders slipping into pre-tax losses, wage growth subdued, inflation ticking up, and the nation lying in wait in a now-typical pre-Budget hiatus, a rate rise now would have risked a substantial hit to confidence.
He said Threadneedle Street, the historic home of the Bank of England, is “clearly determined to keep its powder dry for as long as possible, a welcome decision for thousands of homeowners due to remortgage”.
“But by signalling that a November increase remains a live possibility thanks to a stuttering economy and yesterday’s inflation data, the Bank of England is giving lenders time to absorb that expectation into pricing rather than springing another shock on the market.
“This pattern is already taking hold this week: swap rates are being repriced, and mortgage approvals are inevitably declining.
He thinks we are going to see “this tug of war between debt and growth get much more intense as we approach the Budget”.
“People’s patience is wearing thin with a driving need for certainty, but don’t be fooled: transactions are happening and money is being spent.
“Property markets are adapting to new ebbs and flows: where flat markets are down, house sales maintain; where hospitality declines, logistics improve; and where international investors take stock, domestic money moves in.
“It’s clear that when sellers take a price hit, some buyers see opportunity. The UK economy still has underlying strength, and emerging technologies should help us build momentum.”
