• 44% think the Monetary Policy Committee should cut the Bank Rate today 

• This rises to over half (59%) for those who have a mortgage 

• One in five (21%) think the rate should be held at 5.0%

The September Property Tracker Report from the Building Societies Association reveals consumer expectations on the Bank Rate decision, as sentiment in the housing market remains low.

What is expected of the Monetary Policy Committee

Following the cut in the Bank Rate last month, the first since March 2020, almost half of UK adults (44%) think that based on the current economic conditions the Bank of England’s Monetary Policy Committee (MPC) should cut the Rate again at lunchtime today.  Around a quarter (23%) want to see a 0.50 percentage point cut or more, with a similar number (21%) who believe a cut of just 0.25 percentage points is needed.

Unsurprisingly, mortgage borrowers are more likely to want the Bank Rate to fall today, with 59% saying it should be cut.

One in five (21%) UK adults think the MPC should leave the rate at 5.00%. Only 6% think there should be an increase in the rate, which falls to just 2% for those who have a mortgage on their home.

Mortgage Affordability

Whilst the majority of mortgage borrowers are expecting a Bank Rate cut today, the vast majority are not worried about their mortgage costs. Just 8% are concerned about maintaining their mortgage payments for the next six months, down from 10% three months ago (June 2024). Only 2% said they are not at all confident they can keep up their repayments.

That confidence is not the same for would-be homeowners.  The report shows that the affordability of monthly mortgage repayments continues to be the biggest barrier to buying a home, with almost two-thirds (61%) citing this. Over half (55%) said raising a deposit is an obstacle to them getting a step on the property ladder.

Housing Market Sentiment

Despite the Bank Rate cut last month, overall sentiment in the housing market remained low. Less than one in five people (17%) think now is a good time to buy a home, with over a third (35%) thinking it is not a good time to buy – giving a net score of minus 17. Whilst this is an improvement on the market sentiment in June, when the net score was minus 24, it demonstrates a continued lack of confidence in the market. 

Commenting on the findings, Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association said:

“The cut in the Bank Rate last month marked a significant turning point in what had been a very difficult two and a half years. 

“Whilst the news was welcomed by many homeowners and would-be homeowners at the time of the cut, in reality a reduction of just 0.25 percentage points has not made a significant impact on the overall cost of mortgage payments, as financial markets had expected it and already priced it in. It is not therefore surprising that the majority of mortgage borrowers are looking for a further cut this month. 

“It is clear that it will take more than a small 0.25 percentage point shave off the Bank Rate to bring confidence back to the housing market.  First-time buyers, which are critical for a properly functioning housing market, are still indicating that they are unable to afford to take that step into homeownership. Whilst they will be hopeful of a rate cut it’s quite possible that their hopes will be dashed at noon. Markets and forecasters are expecting the Bank Rate to remain unchanged whilst the MPC wait for additional evidence that inflation will remain persistently lower in the future.

“Any mortgage borrower who is concerned that they may experience financial difficulties in the coming months, should contact their lender as soon as possible, preferably before missing any payments. Mortgage lenders have a range of practical, tailored support available to anyone who may be struggling.”

Press contacts:

Tanya Jackson, tanya.jackson@bsa.org.uk 
Katie Wise, katie.wise@bsa.org.uk 

Notes to Editors:

1. The Building Societies Association (BSA) represents all 42 building societies, as well as 7 of the larger credit unions. Building societies serve around 26 million consumers across the UK and have total assets of over £515 billion. Together with their subsidiaries, they are helping over 3.5 million families and individuals to buy a home with mortgages totalling over £385 billion, representing 24% of total mortgage balances outstanding in the UK. They are also helping over 23 million people build their financial resilience, holding over £385 billion of retail savings, accounting for 19% of all cash savings in the UK.  Within this, societies account for 40% of all cash ISA balances.
2. With all of their headquarters outside London, building societies employ around 51,500 full and part-time staff.  In addition to digital services they operate through approximately 1,300 branches, holding a 28% share of branches across the UK. 
3. For the September Property Tracker survey fieldwork was undertaken between 2 – 3 September 2024 September 2024.  Total sample size was 2016 adults.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). All figures, unless otherwise stated, are from YouGov Plc.
4. When selecting barriers to property purchase respondents were asked to choose their top 3 barriers from a list of options.
5. When calculating the proportion of those concerned about paying their mortgage or rent it excluded respondents who said ‘not applicable’ or ‘prefer not to say’
6. The proportion agreeing ‘now is a good time to buy’ includes those who agree strongly and those who tend to agree, while the proportion disagreeing includes those who disagree strongly and those who tend to disagree. Respondents who answered 'don't know' are not shown, so percentages do not sum to one hundred.
7. Respondents were given the option to select up to three barriers’ when asked what they think are most likely to stop someone from buying a residential property at the moment.

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