The Bank of England’s decision to hold the base rate steady has left many borrowers in a state of uncertainty, particularly those preparing for upcoming remortgages. With inflation still above target and economic growth unpredictable, the Monetary Policy Committee remains cautious, delaying any potential relief for borrowers.
Joe Pepper, UK Chief Executive Officer of PEXA, warns that this standoff could create a backlog in the conveyancing market, urging the industry to act now by implementing robust infrastructure to ensure smoother, more secure transactions when demand inevitably surges.
“The Bank of England’s decision to hold the base rate steady sends a clear signal – conditions may not yet be right for a cut, despite recent progress on inflation and the labour market. With inflation still stubbornly above target and economic growth uncertain, the Monetary Policy Committee remains cautious.
Borrowers will be disappointed, especially those facing upcoming remortgages. They will remain in a holding pattern, trying to eke out their activity until the next favourable shift comes. The longer this goes on, the more and more people will be waiting in the wings, creating a backlog of cases that will need almost immediate attention when a cut happens – the floodgates will open and the conveyancing market, as it stands, will be left to drown.
We must take urgent action to prevent that by putting the right infrastructure in place now that will provide much more certain, secure and streamlined transactions. This is the only way to help conveyancers and allow them to deal with such increased demand, delivering the best outcomes for all.”
