What the Bank of England’s Base Rate Cut Means for Brighton Property Buyers, Sellers & Investors

23rd May 2025

The Bank of England has cut its base interest rate by 0.25% to 4.25%, marking the fourth rate reduction since August 2024. This move, aimed at supporting the economy amid slowing growth, holds important implications for both residential buyers and sellers as well as buy-to-let (BTL) property investors- especially here in Brighton.

What This Means for Buy-to-Let Investors

Improved Rental Yields
It’s not rocket science, lower interest rates reduce mortgage repayments, which in turn boosts rental profitability! For landlords in Brighton the cuts present a significant advantage. Should you wish to speak to one of our mortgage brokers don’t hesitate to get in touch. Read some of their tips here…

Better Re-mortgage & Purchase Opportunities
With lenders cutting rates across both residential and BTL products, now may be an ideal time to re-mortgage or expand your portfolio. Some investors are locking in attractive long-term fixed rates to safeguard against future increases.

A Note of Caution

While the rate cut supports growth, inflation is back on the rise hitting 3.5% in April 2025. This may lead the Bank of England to pause or even reverse rate cuts in the months ahead. Smart investors should factor in these potential shifts and maintain a buffer.

What This Means for Residential Buyers

Lower Mortgage Costs
For first-time buyers and home movers, the base rate cut brings improved affordability. If you’re on a tracker mortgage, your monthly payments will fall immediately. Even fixed-rate mortgages are seeing more competitive offers, with some five-year deals now dropping below 4%. Read our insight into Barclay’s sub 4% deal here…

Bigger Mortgage Potential
Several major lenders have relaxed their stress testing requirements. This means you could potentially borrow thousands more than before, making that dream home in Brighton’s sought-after postcodes a little more attainable.

What This Means for Residential Sellers

More Buyers in the Market
Falling borrowing costs are drawing more buyers back into the market. This could help your property sell faster and potentially achieve a stronger price but sellers should be cautious, the number of newly listed properties is at its highest level in a decade. This means a focus on realistic pricing and standout marketing to secure a sale quickly in Brighton’s busy marketplace.

Brighton’s property market continues to show resilience and strong fundamentals. Whether you’re purchasing a seafront flat, remortgaging a student let in Hanover, or selling a family home in Hove, the latest rate cut introduces a fresh wave of opportunity.