Scullion News & Resources
By the Property Team at Scullion LAW & Scullion LIVING
The Bank of England has delivered an early Christmas present to homeowners and prospective buyers alike. As of today, 18 December 2025, the base interest rate has been cut to 3.75%, marking the sixth reduction since the start of this rate-cutting cycle.
For the Scottish property market, this is a pivotal moment. While the headlines focus on the broader economy, our team at Scullion LAW and Scullion LIVING have been analysing exactly what this shift means for you—whether you are looking to move, remortgage, or sell your home.
The decision to lower rates from 4% to 3.75% is a clear signal that the economic tide is turning. With inflation now down to 3.2%, the pressure on household finances is beginning to ease.
For buyers, this reduction translates directly into more competitive mortgage products. Lower monthly repayments mean increased affordability, which typically unlocks a wave of pent-up demand. We expect to see renewed energy in the market as buyers who have been “waiting and seeing” decide that the time is finally right to commit to a purchase.
It is tempting to think, “If rates are falling, should I wait for them to drop further?”
However, looking closely at the details of the Bank’s decision, waiting could be a gamble. The vote was a narrow 5–4 split, and Governor Andrew Bailey has explicitly stated that while rates are on a downward path, future cuts will be a “closer call.” The pace of reductions may slow down significantly in 2026 as the Bank continues to monitor wage growth and service sector inflation.
This creates a “sweet spot” for sellers right now. Here is why you should consider listing your home immediately:
Buyer Activity is rising: The immediate psychological boost of a rate cut often brings buyers out in force. You want your property on the market while this optimism is fresh.
Stability over Speculation: We have a concrete rate cut now. Waiting for a future cut that is described as a “close call” risks missing the current wave of activity.
The “New Year” Rush: By preparing your home for sale now, you are perfectly positioned to catch the traditional surge of interest in January, fueled by this positive financial news.
Navigating this changing landscape requires more than just an estate agent; it requires expert legal insight.
At Scullion LIVING, we don’t just list homes; we understand the economic factors driving the sale. Working hand-in-hand with the conveyancing experts at Scullion LAW, we ensure that when you find a buyer, the legal process is as swift and stress-free as possible, securing your sale before market conditions shift again.
For a conveyancing quote, speak to our Property Law team now
The market is moving. Make sure you move with it.
If you are thinking of selling, contact Scullion LIVING now for a free valuation. Let us help you capitalise on this positive news and get you moving in 2026.
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