What the July 2025 Interest Rate Hold Means for Property in Manchester and Cheshire

BoE Holds Rates at 4.25%

On June 19, 2025, the Bank of England (BoE) kept the UK base rate steady at 4.25%. This marks the fourth consecutive hold since early spring, reflecting a cautious approach as inflation continues to cool across the UK.

Although unchanged, the decision is significant: it hints at potential cuts later in August or November, which could ease borrowing costs for buyers and stimulate more activity across regional housing markets.

Mortgage Rates Reaction

• 2-year fixed mortgages hover at ~4.04%
• 5-year fixed options around 3.83%

This suggests lenders are pricing in future cuts and increased competition for borrowers, especially first-time buyers and remortgagers.

If you're considering a move or remortgage, now could be a smart time to act, with mortgage rates stable and competition expected to rise if cuts go ahead in August or November. Acting early may give you an edge, particularly in high-demand areas like Hale, Altrincham, or Didsbury.

Average Prices in July 2025

The North West continues to outperform the national average for price growth, driven by solid demand, new infrastructure and connectivity enhancements. Properties in Hale remain one of the priciest and most desirable postcodes, bolstered by its proximity to top-rated grammar schools and transport links.

What It Means for Sellers

Current climate: motivated buyers, especially in catchment zones and commuter belts like Bowdon and Timperley

Strategic timing: listing now may beat the autumn market surge following potential rate cuts

Advice: prepare your home with staging, premium listings and flexible viewings to grab serious interest

A stable rate environment gives both buyers and sellers more confidence, especially for upsizers and downsizers trading within the local market.

Buy-to-Let & Investment Opportunities

The North West continues to offer some of the strongest yields in the UK, with typical rental returns between 5–6%, and higher for HMOs or well-placed city centre flats.

Local trends:

• Hale and Cheshire East attract long-term family tenants, reducing turnover
• Manchester city centre sees strong demand for 1–2 bed flats from professionals and students
• Regeneration areas like Ancoats and Salford Quays remain hotspots for yield growth

If the BoE lowers rates in Q3 or Q4, mortgage affordability improves, meaning landlords can borrow more for less, improving ROI and encouraging portfolio expansion.

As costs ease, this remains a standout region for landlords and portfolio growth.

What to Expect Next

17 July 2025: ONS to release new UK inflation data

7 August 2025: next BoE decision (highly anticipated with possible rate cut)

Late Summer to Autumn: expected rise in activity as families finalise moves before the school year

Summary

If You’re a Seller: Now’s a strategic window. You’re ahead of the autumn rush and buyers are already circling. The Manchester and Cheshire markets remain competitive, especially for well-staged homes and properties in top school catchments.

If You’re a Buyer:

Monitor mortgage deals closely. If rates fall further in Q3, demand will spike. Acting now may secure a home before prices and competition heat up.

If You’re an Investor:

Manchester and Cheshire continue to be safe, income-generating bets. Explore long-let options in Hale or professional apartments in Trafford or Salford.

How Bentley Hurst Can Help

Book a free valuation in Manchester or Hale or a buyer consultation with Bentley Hurst today. Let’s make your next move a confident one.

Why choose us?

• Local expertise – We know the subtleties of each postcode, from Manchester City Centre to Hale
• Market advice – Our team stays on top of economic shifts, interest rate changes and buyer trends
• Full-service support – From accurate valuations and standout marketing to mortgage advice and negotiation help
• Specialists in premium homes – Particularly in Hale, Altrincham and Cheshire's most sought-after areas