Bank Rate Held at 3.75%: What the September Decision Means Locally

The Bank of England's Monetary Policy Committee voted on 17 September 2026 to hold Bank Rate at 3.75%, the sixth consecutive meeting at which borrowing costs were left unchanged. The vote was split six to three, with the minority pushing for an immediate rise to 4% in response to inflation risks linked to the conflict in the Middle East and higher energy prices. For anyone weighing a move in West Hampstead, Kilburn or Kensal Rise, the decision offers a measure of short term stability, though it does little on its own to ease the pressure already built into fixed rate mortgage pricing.

The Decision in Brief

According to the Bank of England's own Monetary Policy Summary and Minutes for September 2026, six members voted to hold Bank Rate at 3.75%, while three preferred an increase of 0.25 percentage points to 4%. The majority pointed to weaker than expected pass through from energy costs into inflation and continued slack in the labour market. The three dissenting members argued that energy prices remain close to the Committee's adverse scenario and that a proactive rise would help anchor inflation expectations ahead of 2027 wage negotiations. The Committee also voted unanimously to continue unwinding its bond holdings through a programme of quantitative tightening, with completion targeted for 2034. UK inflation stood at 3.1% in August 2026, still above the Bank's 2% target. The Committee's next scheduled decision falls on 5 November 2026.

What This Means for Buyers in West Hampstead, Kilburn and Kensal Rise

For buyers, the hold does not translate into cheaper mortgages. According to Moneyfactscompare, the average two year fixed rate mortgage rose from 5.63% in early August to 5.73% by mid September, while the average five year fixed rate climbed from 5.66% to 5.78% over the same period. Several major lenders raised their own pricing during September, ahead of and independent of the Committee's announcement.

Locally, that pressure meets a market where prices have already adjusted. Rightmove data puts the average sold price in West Hampstead over the past year at £855,509, six percent down on the previous year and two percent below the 2023 peak of £868,919. In Kilburn the average stands at £690,008, four percent down on the previous year and seven percent below its 2022 peak of £743,517. Kensal Rise averages £852,941, six percent down year on year and twelve percent below its 2022 peak of £974,207. For buyers with a deposit ready and a mortgage offer in hand, that combination of softer asking prices and a paused Bank Rate may be worth exploring, though what a lender will actually offer depends far more on individual circumstances such as deposit size and income than on the base rate alone.

What This Means for Sellers

Sellers in the three areas face a market where pricing precision matters more than timing the Bank Rate. Coverage of the September decision by Property Industry Eye found agents largely in agreement on one point: realistic pricing is what separates a sale from a listing that sits. One agent quoted in that coverage observed that where asking prices reflect current affordability constraints, deals are still being done, while homes priced against an earlier market continue to be passed over. Another made a similar point about buyer choice, noting that unrealistic pricing now simply gets scrolled past.

Jeremy Leaf, also quoted in that coverage, went further, saying "a rise in interest rates is becoming increasingly likely and now sooner rather than later." Given that three Committee members already voted for exactly that this month, sellers weighing when to list in West Hampstead, Kilburn or Kensal Rise may want to treat the current hold as a stable but temporary backdrop rather than a signal that borrowing costs are about to fall.

What This Means for Landlords and Tenants

The rental market adds another layer for landlords and tenants across NW6, NW2 and NW10. Zoopla's September 2026 Rental Market Report puts the average UK rent at £1,343, up 2.6% on a year earlier, with growth over the past six months running at an annualised rate closer to 4%. Inner London rents are rising faster still, at 3 to 4%, partly because higher mortgage rates are keeping first time buyers in the rental market for longer. Zoopla also recorded 5.3 enquiries per rental listing nationally, six percent higher than a year ago, as the stock of homes available to rent continues to shrink, with new supply down 6% year on year.

For landlords, a held Bank Rate means existing mortgage costs stay where they are rather than falling, while rental demand locally remains firm. For tenants, the national supply picture in the Zoopla report suggests competition for well regarded properties in West Hampstead, Kilburn and Kensal Rise is unlikely to ease in the near term.

Homesforth's View

Our reading of the September decision is that it changes little for anyone already committed to moving in West Hampstead, Kilburn or Kensal Rise, and considerably more for anyone still deciding whether to wait. Mortgage pricing has moved ahead of the Bank Rate for most of this year, and today's hold does not reverse that. What has changed locally is that average sold prices across all three areas now sit behind where they stood in 2022 and 2023, which for some buyers and sellers is the more decisive number in this update. We would rather talk through what these figures mean for your particular position than offer a general prediction on where Bank Rate goes next.

Frequently Asked Questions