Interest Rates Cut to 4.0%: What It Means for Landlords and Why Guaranteed Rent Offers Real Stability

The Bank of England has cut interest rates by 0.25%, bringing the base rate down to 4.0%. This is the fifth cut since August last year, signalling that the Bank sees inflation softening and the economy slowing, but not stalling.

For landlords, this shift comes at a familiar crossroads: mortgage costs may come down gradually, but margins are still being squeezed by tighter regulations, increased operating costs, and inconsistent rental income.

So, what does a rate cut really change?

The obvious hope is that lower rates will feed into cheaper borrowing, but we’re not there yet. Most lenders had already priced this cut in, and while we may see slightly improved remortgage products in the coming months, the market remains cautious.

A rate cut, but not a reset

The reality is: while the base rate has dropped, mortgage rates are still high compared to pre-2022 levels. Lenders are cautious, and many had already priced this cut in. Fixed-term products may start to improve slowly, but it won’t happen overnight.

Meanwhile, landlords are still absorbing:

• Increased maintenance and compliance costs

• Rent arrears risk

• Higher capital expenditure expectations

• And crucially, void periods, which remain a quiet but significant cost

The average void in the UK is at 23 days per year, equating to nearly £1,500 in lost rent on a £2,000/month property. That’s before factoring in agency fees, tenant find costs, or any time spent managing the property yourself.

So where does guaranteed rent fit in?

In an uncertain market, predictability becomes the most valuable asset.

At Apex, our guaranteed rent model removes the usual volatility that comes with letting property. We become your tenant — not your agent — and we pay the rent every month, regardless of occupancy.

What you get:

• Fixed monthly rent, paid on time

• No fees, ever - no commission, no renewals, no hidden charges

• Zero void loss - rent continues even when the property is empty

• Fully managed service, including inspections, maintenance and tenant-related repairs

• In-house teams managing day-to-day issues and occupant communication

• Long-term agreements - often 24 to 48+ months

• Compliance oversight and full property condition reporting

You get consistency, less admin, and more time back - all while protecting the long-term value of your asset.

Final thought

A quarter-point cut is a welcome sign. But the environment for landlords is still tight and margins remain under pressure.

If you’re looking for a way to lock in certainty, strip out agent fees, and avoid the disruption of voids and turnover, now is a smart time to consider guaranteed rent.

With Apex, it’s not just about getting paid. It’s about having a model that actually works - even when the market doesn’t.

GET AN INSTANT GUARANTEED RENT VALUATION HERE

or call our team on 020 3030 4241