Black & White Bridging's comment on today's base rate cut

08 May 2025

Martyn Smith, chief executive officer at Black & White Bridging said:

“While today’s rate cut is a step in the right direction, it feels like the Bank of England is still playing catch-up. Inflation is falling, economic growth is anaemic, and borrowers have been shouldering high interest rates for too long. A sharper cut would have made a clearer statement and brought quicker relief to households and businesses alike.

“In the bridging space, we expect to see an uptick in enquiries as borrowing costs edge down and confidence returns. But lenders and borrowers alike are still waiting for decisive momentum—something a larger cut might have delivered.

“In the Buy-to-Let sector, this move will have a more meaningful psychological than material impact. Many landlords are looking for signs of stability and direction, and today’s decision gives them hope that the worst is behind us. That said, swap rates have already priced in a degree of optimism, and some in the market may see this decision as too little, too late.

“The Bank must now show leadership, not just caution. Following market sentiment is not the same as setting the agenda—and right now, decisive leadership is what the property market needs.”