The Bank of England announces its latest interest rate decision today, alongside a full Monetary Policy Report that will shape expectations for the rest of 2026. Meanwhile, fresh data shows mortgage lending more than doubled in June, even as summer sales activity softens across much of the country.
The Bank of England’s Money and Credit report, published yesterday, revealed a striking jump in mortgage activity. Net borrowing of mortgage debt rose to £7.7 billion in June, up from £3.3 billion in May and well above the six-month average of £4.9 billion. Mortgage approvals for house purchases climbed to 58,200, up from 56,600 in May.
These figures suggest that borrowers are pressing ahead with purchases despite elevated rates. Remortgage approvals also edged higher, reaching 34,200 in June from 33,800 the previous month.
Markets widely expect the Monetary Policy Committee to hold Bank Rate at 3.75% today, with a forecast 7-2 vote. The accompanying Monetary Policy Report, published at noon, will provide updated inflation and growth forecasts that could signal whether a rate cut is likely later this year.
CPI inflation fell to 2.6% in June, below the 2.7% forecast and the lowest reading since March 2025. Core inflation held at 2.6% while services inflation also eased to 2.6%. These figures give the MPC room to consider cuts, but the ongoing conflict in the Strait of Hormuz and its impact on oil prices continue to create upward pressure on costs.
Swap rates have eased in recent days. The two-year SONIA swap stood at 4.25% on 27 July, with the five-year at 4.30%, both moving lower. If this trend continues, lenders may find room to trim fixed rates in the coming weeks.
Zoopla’s latest House Price Index, also published today, shows annual house price growth at 1.3%, down from 1.7% a year earlier. Sales agreed are running 9% below last year’s level, with three-quarters of local markets recording fewer transactions.
This reflects a combination of elevated mortgage rates and political uncertainty. Since January, rate increases have added approximately £125 per month to repayments on a typical UK home.
However, this is not a story of collapsing demand. Prices continue to rise in most areas, buyers have more room to negotiate than at any point in recent years, and the North East has bucked the national trend with sales 4% higher year on year.
The best mortgage rates remain competitive. First direct continues to offer 4.47% for a two-year fix and 4.54% for five years at 60% LTV. Rightmove’s daily tracker shows the average two-year fixed rate at 4.92%, down from 5.08% last month.
Norfolk’s property market continues to reflect the national picture of price resilience alongside softening activity. Construction Capital’s H1 2026 data puts the county median at £266,250 across 8,854 transactions, a modest 1.9% decline year on year.
The town-by-town picture shows considerable variation. Wymondham leads at £300,000 median (flat year on year), while Norwich sits at £230,000 (down 1.3%). Dereham is the only town recording positive growth, up 0.7% to £270,000.
What stands out is the volume of activity. Nearly 9,000 transactions across Norfolk over 12 months represents a deep, active market. Sellers pricing realistically from day one continue to find buyers. Those who test the market with aspirational pricing face significantly longer timelines.
Across the 324 locations we monitor, the average SSTC rate stands at 19% with an average price of £387,148. The number of sellers’ markets has grown to 16, up from 10 earlier this month, with 48 balanced and 260 favouring buyers.
The strongest performers tell a clear story about what buyers want. Blofield Heath and Cringleford both show 55% of listed homes sold subject to contract, making them the joint strongest sellers’ markets in the region. Blofield and Caistor St Edmund follow at 50% SSTC.
Speed of sale varies dramatically. Hethersett is currently the fastest-selling location at 127 days, followed by Lenwade at 169 days and Felthorpe at 179 days. At the other end, East Winch records an average of 1,521 days on market, while Baconsthorpe and Blythburgh both show just 5% SSTC, giving buyers considerable negotiating power.
The growth in sellers’ markets from 10 to 16 is encouraging, particularly in commuter villages with good schools and transport links. If you are in one of these high-demand pockets, your home is genuinely competing for buyers. If you are not, pricing strategy becomes the single most important factor.
Zoopla’s data reinforces this. Across the UK, 30% of homes listed in the second quarter remain unsold with no price reduction. September has historically marked the point when the share of homes cutting their asking price peaks, and when sales activity typically recovers. Preparation now could prove decisive.
The surge in mortgage lending suggests confidence is returning, even if headline sales numbers remain below last year. With 260 of 324 Norfolk and Suffolk markets favouring buyers, this remains an excellent window for negotiation.
Today’s Bank Rate decision and the accompanying Monetary Policy Report will set the tone for mortgage pricing through the autumn. If the MPC signals openness to a cut later this year, expect lender competition to intensify, particularly at lower LTV bands where the best rates are already below 4.50%.
Today’s Bank of England decision is the headline event. Tomorrow brings HMRC’s June transaction data, which will show whether the lending surge translated into completions. Friday sees the Nationwide July House Price Index, the first major index to capture the full month’s data.
September has historically marked the point when summer softness gives way to renewed activity. For sellers considering a move, the preparation window between now and early September could prove decisive.
