Comment from Black & White Bridging on Bank of England interest rate decision

06 February 2025

Martyn Smith, Managing Director at Black & White Bridging, commented:

"The Bank of England’s decision to lower the base rate is a welcome step towards improving borrowing conditions across the market. While lenders and borrowers alike will benefit from reduced financing costs, the impact on the specialist lending sector will depend on how quickly this translates into greater liquidity and confidence.

“For bridging finance, the rate cut could encourage more developers and investors to proceed with projects, particularly as affordability pressures ease slightly. However, the challenges facing small landlords in the buy-to-let sector remain significant, with regulatory changes and tax burdens continuing to shape the market.

“It will also be crucial to watch the upcoming ONS inflation data later this month. If inflation continues its downward trajectory, this could reinforce expectations of further rate cuts later in the year. However, if inflation remains stubbornly above the Bank’s 2% target, we may see a more cautious approach from policymakers. We are committed to providing flexible, reliable funding solutions that help clients navigate shifting economic conditions and seize emerging opportunities."