Please see the important information below regarding Westminster’s new selective licensing scheme which starts on 24 November 2025. THIS SCHEME APPLIES TO ALL EXISITING AND FUTURE TENANCIES, requiring most privately rented properties in 15 designated wards to have a license by that date – it is the responsibility of every Landlord to comply.
Applications for the license open on 1 October 2025 and can be submitted through the Westminster City Council’s licensing portal.
The Bank of England has narrowly backed an interest rate cut in a knife-edge move after it had to vote twice to reach a decision.
The cost of borrowing has been reduced from 4.25% to 4% in the fifth cut since last August.
But the Bank’s unprecedented second vote suggests further interest rate cuts will be finely balanced amid concerns that inflation will spike as businesses raise food prices to pay for increased employment costs.
The Bank of England’s Monetary Policy Committee is due to make a decision on the base rate tomorrow, but with inflation yet again higher than expected, there is little chance of a rate cut.
The markets had been expecting the CPI to fall to 3.3% after April’s shock 3.4% (adjusted from 3.5%) after steep rises in the cost of food and furniture.
With the UK’s economy flagging, there is pressure on the Bank to reduce rates, but it is currently nowhere near achieving its target 2% inflation rate. And, as tensions in the Middle East push up energy costs, economists are expecting it to remain above 3% for the remainder of 2025.
The Chancellor has revealed £39 billion to drive a significant increase in the number of affordable homes being built across the country over the next ten years.
Presenting her Spending Review to parliament this lunchtime, Rachel Reeves revealed the “greatest cash injection in affordable and social housing in fifty years”.
The key thrust of this is a new Affordable Homes Programme into which the government is to pour billions over the next decade which will be direct Government financial support for house building and in particular homes available via social rent.
Her comments follow calls for just such a huge increase in affordable and social rent house building from many quarters including both lobbying organisations such as Shelter and Generation Rent, but also industry bodies Propertymark and the National Residential Landlords Association, in recent times.
The Bank of England has cut the base interest rate by 0.25% today as expected in a welcome shot in the arm to the property market.
Last time, the Bank held the rate at 4.5%, but has reduced it to 4.25% this month in what could be the first in a series of cuts this year.
With inflation still at 2.6%, above the Bank’s target of 2%, and the economy in need of some help to aid growth, the cut was widely anticipated.
Current swap rates, which the Bank’s Monetary Policy Committee (MPC) and Governor Andrew Bailey (main picture) factor into their thinking, also pointed to a base rate reduction.It was a close vote at the latest MPC meeting with a narrow 5-4 majority in favour of a cut.
Today marks a decade of Phillips Harrod leading the way in prime London real estate. From securing exclusive properties to delivering exceptional service, we’re proud of the journey we’ve built with our clients, partners and team.
A huge thank you to everyone who has been part of our story, we couldn’t have done it without you! Here’s to the next 10 years of success, innovation and finding dream homes.
However you will be celebrating this holiday season, we hope you have a wonderful time and enjoy a happy and healthy new year. We’d like to thank you for your support throughout 2024 and look forward to working with you in 2025.
Over the festive period, we will be responding to all enquiries, however, our offices will be closed from 23rd December to 1st January.
However you will be celebrating this holiday season, we hope you have a wonderful time and enjoy a happy and healthy new year. We’d like to thank you for your support throughout 2024 and look forward to working with you in 2025.
Some properties that we have let or sold during 2024
The Bank of England has cut interest rates for the second time this year as expected.Policymakers at the Bank have opted to reduce interest rates to 4.75% today.Rates sat at 5% after being cut by 0.25% points in August, the first reduction since 2020. They were then kept the same in September.Bank of England governor Andrew Bailey offered reassurance, saying it was “likely that interest rates will continue to fall gradually from here”.But the Bank’s new quarterly forecast suggests that it considers last week’s Budget to have added to inflationary pressures, in a way that will slightly slow the pace of these rate cuts.Bailey cautioned: “We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much.”
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “While it will be some time before we establish the long-term impact of the budget on interest rates, today’s decision to cut the rate will be a welcome sentiment boost for the property market.
“Although the broad path of mortgage rates has been trending towards lower rates, over the past few weeks it has not been as clear cut. While some lenders have continued to drive new business with competitive rates, others have pulled back a little and adjusted their rates upwards. Hopefully today’s decision will influence more lenders to be more competitive with their offerings.
“While property market activity remained robust ahead of the Autumn Budget, the number of new properties reaching the market and the time taken to sell are both rising, leading to a boost in available homes for sale. Supply has reached its highest level since 2014, giving buyers more choice. As the market shifts to favour buyers, sellers will need to recognise the continued price sensitivity and price competitively to achieve a sale.”
Matt Thompson, head of sales at Chestertons, said: “With inflation below 2%, it was almost certain that the Bank of England would cut interest rates today. This is welcome news for house hunters who will now feel more motivated to resume their search. We predict the boost in buyer confidence to result in the property market being busier than expected for this time of year.”
Jeremy Leaf, north London estate agent, said: “Of all the factors influencing home-buying decisions, economic prospects and direction of travel for interest rates in particular have most impact.
“Today’s reduction will certainly give a kick to those sitting on the fence who are undecided about whether to stick or twist, coming on top of other recent positive housing market data.
“There’s more choice of stock now than a few months ago, so sellers need to remain competitive if wanting to take advantage of inevitable improved buying power as longer-term affordability concerns persist too.
“First-time buyers especially are looking to gain not just properties from investors withdrawing from transactions due to their higher stamp duty liability announced in the Budget but their own obligation to pay more of the tax from next April.”
Nathan Emerson, CEO of Propertymark, commented: “Today’s announcement will be welcome news for buyers, especially for those who may have been delaying any house move due to potential uncertainty on their overall affordability. With the Bank of England’s most recent Money and Credit Report revealing net mortgage lending has further increased by 0.9 per cent in September, up on the 0.7 per cent seen in August, coupled with proposed changes to Stamp Duty thresholds from next April, it’s highly likely we may see buoyant activity in the market across the winter months.”
Nicky Stevenson, managing director of Fine & Country, said: “As we head into the final months of the year, market conditions are looking favourable, with today’s decision to cut the rate likely to further boost confidence in the market.
“While there was some nervousness in the lead up to the Autumn Budget, activity levels remained robust and should start to build with much of the uncertainty now in the rearview mirror.
“Mortgage approvals increased for the fourth consecutive month, reaching 65,647 in September, a level not seen since August 2022. Relatively lower mortgage rates have been helping to boost sales, and today’s cut will be the jab in the arm the market needed as we head into the traditionally quieter Christmas period.
“The good news is that inflation seems to have been reined in, rising by 1.7% in the year to September, down from 2.2% in August. The OBR expects that inflation will remain around the target 2% until 2029.
Richard Donnell, executive director at Zoopla, commented: ”The reduction in the base rate to 4.75 per cent is welcome news and has supported continued strong sales growth over 2024 versus last year. The decline in the base rate is already being factored into lower mortgage rates which have reached a two year low over the autumn. Lower borrowing costs are expected to support buyer demand and sales into 2025.”
Nick Leeming, chairman of Jackson-Stops, remarked: “A second base rate cut this year is welcome news. While a 0.25% cut is a small milestone in the march back to a mortgage-friendly borrowing environment, it signals confidence from the Bank of England which will reassure buyers and encourage them to continue their property search or purchase.
“Following the initial market volatility from the chancellor’s Autumn Budget announcements and the loosening of fiscal rules, the Bank’s actions show it is taking a long-term view of the UK’s economic outlook with improvements anticipated on the horizon. With inflation falling faster than expected, there’s confidence to proceed with rate cuts. Economists predict a quarterly rate-cutting rhythm during 2025, which should translate into further reassurance for homebuyers looking to flex their borrowing power to upsize or relocate.
“For buyers and sellers alike, the bigger drag on confidence and activity remains a lack of available housing stock. Competition remains fierce in areas where affordable property is scarce, and it’s been the elephant in the room for successive Governments.
“The chancellor told us nothing we didn’t already know by acknowledged the UK’s housing crisis, but the repeated commitment to delivering 1.5 million new homes within the Parliament would make a tangible difference. However, until planning is reformed, and building begins at a grander scale than we’ve grown accustomed to, the market will remain locked in a supply-and-demand tug of war.”
Amy Reynolds, head of sales at Antony Roberts, noted: “It’s a significant week for the property market with the Budget, the US election, and now the Bank of England’s interest rate decision.
“The August rate reduction boosted buyer confidence, leading to an uptick in applicant registrations, viewings, and offers, contributing positively to our fourth quarter revenue. A further rate drop would likely encourage more vendors to sell and buy, helping to ‘get people off the fence.’ With likely further reductions throughout next year, this should provide stability, giving people the confidence to plan, which is essential for maintaining market momentum.
“With the Budget behind us, we now have greater certainty. Homeowners without second homes may feel encouraged by a rate drop, though those with holiday homes or rental properties may wait for further rate cuts before re-entering the market.
“We are cautiously optimistic but concerned about the future stamp duty rate change for first-time buyers. Do they realise how long it takes to complete a purchase? If the mortgage market reacts positively to today’s reduction, first-time buyers should seriously consider making their move to agree a purchase before Christmas, as delays could prove costly.”
Guy Gittins, CEO of Foxtons, added: “Whilst homebuyers will have been disappointed about the lack of a stamp duty relief extension in last week’s Autumn Budget, news today that interest rates have been cut will certainly help to boost their mood.
“The UK property market has already been showing strong signs of recovery in 2024 and this has been driven by improving market sentiment as a result of a more stabilised lending landscape.
“We also tend to see a wave of new buyer interest following a cut to interest rates, as those previously priced out of the market re-enter the fray and so today’s news will no doubt entice more buyers to make their move.
“With a stamp duty deadline now looming, we expect to see a supercharged level of market activity in the coming months as buyers look to complete before 1st April next year. Today’s decision to cut rates will only help add to this increased momentum and we now look set for a very strong end to the year and an even stronger start to 2025.
“There currently remains a good level of stock on the market, so whilst demand is set to climb, it’s unlikely to drive house prices to the same extent as it would in an under supplied market.”
The Renters (Reform) Bill has finally been introduced and presented in Parliament, and after much discussion with landlords and agents, it is clear there is much more to be debated.
The most important thing to note is that this Bill is not yet law. This Bill is the first step to bring this proposal into law, and it is likely that we will see many changes made to it as it progresses through Parliament. We do not expect to see it implemented as law until 2024 at the earliest.
This Bill is unlikely to be the final form of the legislation. There are some key changes the government intends to make.
End of no-fault evictions
The proposed Bill intends to end no-fault evictions (section 21 Notices), meaning landlords will only be able to serve notice on tenants when they have reason to do so. The government intend to expand the grounds under section 8, to provide greater reasons for evicting tenants, including if the landlord wants to sell or move back into the property. However, these grounds cannot be used during the first six months of the tenancy. There is also a new proposed ground for repeated serious arrears, providing mandatory grounds for possession where a tenant has been in at least two months’ arrears three times within the previous three years. It is also proposed that the notice period for the existing rent arrears eviction grounds will increase to four weeks.
It is important to note that this is not law yet, therefore, landlords can continue to serve section 21 notices on tenants at this time.
End of fixed term tenancies
The Bill also includes an intention to bring an end to fixed term tenancies. Instead, all tenancy agreements will be periodic, rolling on a month-by-month basis, with no end date. This means the tenancy agreement will only end when the tenant or landlord gives notice. In theory, this means that tenants will be able to give two months’ notice to leave the property at any time, including when the tenancy has just begun.
Removal of rent review clauses
Rent review clauses will no longer be allowed in tenancy agreements. Instead, a landlord will only be able to suggest a rent increase once a year, providing the tenant with a 2-month notice period. A tenant will be able to challenge the rent increase under the new Ombudsman Scheme that is to be set up under this Bill (discussed below).
Right for the tenant to request a pet
The Bill provides the tenant with the right to request a pet and places an obligation on the Landlord that they cannot unreasonably refuse or withhold consent. Consent or refusal must be given within 42 days of the permission being sought.
The new provision will allow landlords to protect themselves by requiring that tenants get pet insurance that covers damage to the property. We will see an extension of the Tenant Fees Act 2019 to include this as a permitted payment.
Property Ombudsman
It is suggested it will become a requirement for all private landlords who rent out property in England to join a government-approved Ombudsman scheme. This will introduce a landlord redress scheme, allowing former or current tenants to make complaints against a landlord, which will then be independently investigated by the Ombudsman. The decision of the Ombudsman will be binding against landlords.
Portal of Landlords
In addition to the new Ombudsman scheme, there will be a digital property portal that will help landlords to understand and demonstrate compliance with their legal requirements. This is intended to protect both tenant and landlord, allowing tenants to know if the landlord is not complying with their requirements, and landlords to demonstrate their regulatory compliance.
The Bill is now subject to debate through Parliament. There remain many unanswered questions about the proposed grounds as well as the impact on student accommodation. As matters progress, we will ensure that we keep you updated on the progress of the Bill and its potential impact. For now, it is clear this proposed law intends to make major changes to the private rental sector, not all of which are likely to be welcomed by the industry.
