Key10x Property Insights

Interest rates rise to 4% as house prices stall: November 2026 market update

The Bank of England has raised interest rates for the first time in this cycle, and the main house price indices show the market stalling. Here is what the latest figures say, and what they mean if you invest in property.

Bank Rate rises to 4%

On 5 November 2026 the Monetary Policy Committee voted 8–1 to raise Bank Rate by 0.25 percentage points to 4%. One member voted for a larger rise to 4.25%. Rates had been 3.75% since December 2025, and earlier in the year most forecasters expected further cuts rather than a rise.

House prices: flat to falling

  • Nationwide: annual growth slowed to 0.5% in October, the weakest since January 2024. Prices were unchanged on the month and the average was £273,566.
  • Lloyds (formerly Halifax): prices fell 0.6% in October to an average of £296,285, and were 1.2% lower than a year earlier, the biggest annual fall since October 2023.
  • Mortgage approvals: Bank of England data shows 53,443 approvals for house purchase in September, down 19.4% on a year earlier.

Looking further ahead, Savills expects prices to fall by about 1.5% in 2027 because mortgage rates are likely to stay high.

What this means for investors

  • Stress-test every deal. Check that the rent still covers the mortgage if rates rise again, and that the numbers work at today’s buy-to-let rates, not last year’s. Our guide to BRRR when rates are higher shows how to run the numbers.
  • Refinancing will cost more. If a fixed rate ends in the next year, plan for higher payments now and speak to a broker early.
  • Buyers have more room to negotiate. With fewer buyers about, cash and well-prepared buyers can often agree better prices, especially on properties that need work.
  • Look regionally. National averages hide big differences. Yields in the Midlands and the North are generally higher than in London and the South East. See where we source property.

If you would like to talk through how these changes affect a property you own or are looking at, contact our team.

Related reading

Sources

This article is general information, not financial, tax or legal advice. Property values and rents can fall and your capital is at risk. Speak to a qualified adviser about your own circumstances.