The Bank of England Has Held Again. What It Means for Landlords.
RealYield Team
Property Analyst
The Bank of England held Bank Rate at 3.75% on 30 April 2026. The vote was 8-1.
That one dissenting vote came from Huw Pill, the Bank's Chief Economist. He wanted to raise to 4.0%, arguing that energy price inflation could embed itself in wage and price-setting across the UK economy in a persistent way. Eight members disagreed. Governor Andrew Bailey framed the situation as the "most difficult combination" the Bank had faced: energy prices rising due to the Middle East conflict, economic activity being squeezed by the same shock, and inflation already above target.
For landlords remortgaging in 2026, this holds one message: rates are not coming down quickly. Here is what the decision actually means.
What the Decision Said
The MPC voted to maintain Bank Rate at 3.75%. UK CPI reached 3.3% in March 2026, up from 3.0% in February. The Bank's Monetary Policy Report projected that inflation is "likely to be higher later this year" as energy price effects continue to pass through.
Pill's dissent was notable. As Chief Economist, he sits at the centre of the Bank's analytical work. His argument was specific: higher energy prices represent an inflationary shock, and second-round effects in wages and prices could push UK inflation higher in a way that outlasts the initial energy shock. The eight who voted to hold saw the same energy shock as a drag on activity, limiting how aggressively the Bank could tighten.
The next MPC decision is in June 2026. Market pricing at the time of the April meeting pointed to another hold, unless April CPI surprises sharply to the downside. April inflation data is expected around mid-May.
Frequently Asked Questions
What did the Bank of England decide on 30 April 2026?
The Monetary Policy Committee voted 8-1 to hold Bank Rate at 3.75%. Chief Economist Huw Pill was the sole dissenter, voting to raise to 4.0%. The decision reflected deep uncertainty over global energy prices following the Middle East conflict, with CPI at 3.3% in March 2026 and the Bank projecting inflation likely to rise further.
Will the BoE hold keep buy-to-let mortgage rates high?
BTL mortgage rates are priced off SWAP rates, not the Bank Rate directly. SWAP rates eased after the April decision (2-year: ~3.40%, 5-year: ~3.55%), giving lenders room to reduce pricing. The hold removes the risk of an immediate rate rise, which stabilises SWAP pricing. But average BTL rates remain elevated at 5.46% (2-year) and 5.76% (5-year) as of April 2026.
Does the Bank of England decision affect the ICR stress test?
No. The PRA's minimum ICR stress rate of 5.5% comes from Supervisory Statement SS13/16, not from the Bank Rate. A BoE hold or cut does not automatically change lender affordability tests. The 5.5% floor remains standard across mainstream and specialist BTL lenders in 2026.
When is the next Bank of England rate decision?
The next MPC decision is due in June 2026. Market pricing at the time of the April decision pointed to another hold, unless April CPI data (expected mid-May) surprises sharply lower.