Bank holds rates at 3.75%: what it means if you're selling

A base rate decision sounds like news that should change your plans overnight. It rarely does. Here is what the Bank actually decided, what it means for mortgage costs, and what it changes for you if you are thinking about selling or buying in the months ahead.

What did the Bank of England decide on 18 June 2026?

The Bank's Monetary Policy Committee, the group of nine people who set the base rate, voted to hold it at 3.75%. The base rate is the interest rate the Bank of England charges other banks, and it feeds through to the rates lenders offer on mortgages and savings. The rate was also held on 30 April and 29 May 2026, so this is a settled position rather than a surprise.

Rates are on hold because inflation is still above target. UK consumer price inflation was 2.8% in May 2026, above the Bank's 2% goal, and some committee members argued for a rise rather than a cut. The base rate peaked at 5.25% in 2023 to 2024 before a run of cuts brought it down to today's 3.75%.

How does a held base rate affect mortgage rates?

Fixed mortgage rates do not move one for one with the base rate. They are priced off what markets expect rates to do over the next few years, so a widely expected hold is usually already baked in. In June 2026 the average two-year fixed rate sat around 5.6% to 5.7% and the average five-year fix around 5.6%, both a little lower than at the start of April. A held base rate keeps that picture broadly stable rather than pushing pricing up.

What does a held rate mean if I am selling this summer?

For sellers, the rate is not the headline this summer. The supply of homes for sale is the headline. Rightmove reported a historically high number of homes on the market in its June 2026 index, and the average asking price fell 0.6% over the month to £376,191, the biggest June drop in fourteen years. Buyers have more choice and are pricing carefully, so a sensible asking price matters more than the base rate.

• Price to the evidence, not to hope: with more homes competing, an overpriced listing sits and goes stale.
• A stable rate helps buyers plan, which supports demand at a fair price.
• Compare more than one agent's valuation so you can see the realistic range before you list.

What does it mean if I am buying?

A held rate gives buyers a steadier base to budget against, and more homes for sale means more room to negotiate. If you are buying and selling at the same time, a flat or slightly softer market tends to be neutral: you may get a little less for your sale, but you typically pay a little less for your purchase too.

Should I wait for rates to fall before I sell?

Trying to time the base rate is a hard way to make a sound decision. Nobody, including the Bank, knows the exact path from here, and the next decision is not due until 30 July 2026. The better question is whether selling fits your own plans and your own timeline. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, so you can compare on merit before you commit to a single agent.

A base rate you can predict is worth more to a seller than a rate cut you are hoping for. Plan around what is certain.