The survey, conducted by Butterfield Mortgages, suggests that both economic conditions and government policies will play a major role in shaping the property market over the next year - with many predicting an increase in the base rate in the near future.
More than two thirds (69%) believe the Bank of England’s base rate will be higher than 4.50% by early 2026, with the most common prediction being a rise to 5.25%, and almost the same number - 67% - say that interest rates and borrowing costs will be the biggest factors affecting the property market in 2025.
Similarly, 64% of brokers feel that recent tax and regulatory changes have made property investment more complex. Many brokers point to upcoming adjustments, such as the expected Stamp Duty increase in April, as factors making the market harder to navigate.
Alpa Bhakta, CEO of Butterfield Mortgages in the UK, said: "It’s no surprise that most UK brokers remain focused on the Bank of England’s interest rate decisions—these have long been, and will continue to be, the key driver of market activity. However, it is surprising that 69% of brokers expect the base rate to be higher at the start of 2026, especially given January’s decline in inflation and the Bank of England’s indication that further rate cuts could follow.
“This underscores the need for lenders to stay ahead of the curve - our research points to a clear demand for expert guidance in navigating the increasingly complex regulatory and tax landscape. Specialist lenders must utilise their network of regulatory and tax experts to help brokers support property investors to make confident decisions about their portfolios in the coming months.
"While market conditions have shown some signs of improvement, it’s clear that brokers and lenders must collaborate closely. Together, we can address the challenges ahead and ensure the property market remains resilient in 2025 and beyond.”
