Bank of England Holds Interest Rates at 4.0% — What This Means for Edinburgh Buyers, Sellers & Landlords

Sean McMahon
6 days ago
2 min read

The Bank of England has announced that the base interest rate will remain at 4.0%, despite speculation that another reduction might be introduced this month.

For many in the property market — particularly here in Leith (EH6/EH7) and South Queensferry (EH30) — this decision means continuity and stability heading into late autumn.

While the Bank has indicated that further rate cuts are likely, the timing remains dependent on inflation movement and the upcoming UK Budget announcement later this month. In other words: the direction of travel is downward, but gradually.

What Does This Mean for Homeowners Thinking of Selling?

We are still seeing:

Strong buyer demand for well-presented homes in EH6, EH7 and EH30
Shorter time-to-sell compared with the wider Edinburgh average
Buyers who are motivated, especially where lifestyle and location are key drivers (The Shore, Abbeyhill, South Queensferry waterfront)

Many sellers we speak with are waiting for the “perfect moment” — but a stable interest rate environment is often exactly that.

If rates continue to ease into early 2026, buyer confidence may strengthen further. Listing now means you benefit from:

Motivated, pre-approved buyers
Less competition than peak spring
Realistic pricing leading to smoother transactions

What Does This Mean for Landlords?

For landlords across Leith, Abbeyhill and South Queensferry, this rate hold is significant:

Mortgage costs for many are becoming more predictable
Lenders are beginning to reintroduce competitive products
Rental demand locally remains high, particularly for:
- 1-bed and 2-bed flats near tram and bus links
- Family homes near primary and secondary schools

We are also reviewing rent and compliance with every one of our landlords, ensuring long-term stability, legality and yield protection.

If your fixed rate is renewing in the next 6–12 months, now is the time to review your position — not when the renewal letter arrives.

What About Buyers?

The key shift we’re seeing locally is buyer confidence increasing, helped by:

More competitive mortgage products
Slight softening in asking price expectations
Strong lifestyle pull of The Shore, Leith Walk and South Queensferry waterfront

The average two-year fixed mortgage is now around 4.44%, down year-on-year.

This is still higher than pre-pandemic levels, but lower than last winter, and heading in a positive direction.

For many first-time buyers and movers, this is the moment they’ve been waiting for.