July 2025 was a month driven by heavy policies. Whilst mortgage costs remained unchanged, Westminster and regulators issued a flurry of consultations, draft regulations, and data releases that will shape the market well beyond the summer holidays. Here are the headlines of the month that every buyer, seller, and landlord should know about.

Bank of England Keeps Base Rate at 4.25 %

The Monetary Policy Committee’s last vote (18 June) left Bank Rate unchanged at 4.25 %, and no July meeting meant that stance was carried through the month. Lenders kept most five-year fixes between 3.9% and 4.3%, although analysts now widely expect a trim at the 7 August meeting.

Why it matters: 

Stable base rates are giving borrowers a brief window to lock in sub-4 % deals before any autumn change happens.

Renters’ Rights Bill Clears Lords Report Stage

Peers finished examining closely the Renters’ Rights Bill on 15 July, agreeing on late amendments that extend the Decent Homes Standard to armed-forces family accommodation and tighten rules around local-authority penalties. The Bill now awaits consideration of the Lords' changes in the Commons after the recess.

Why it matters:

Abolition of Section 21 “no-fault” evictions is getting closer each day. Landlords should review tenancy processes now; delays could become longer once the Act is in force.

New ‘Decent Homes Standard’ Consultation Launched

On 2 July, DLUHC opened a 10-week consultation to update and extend the Decent Homes Standard to the private rented sector. Proposals include mandatory EPC Band C by 2030 and more precise timetables for tackling damp and mould.

Why it matters:

The new standard process could require more modernised spending on 2 million+ rented homes. Budgeting early will be cheaper than changing it once deadlines are fixed.

ONS Data: Rent Inflation Cools, House Prices Go Up

The average UK private rent rose 6.7% in the year to June, which came down from 7.0% in May. Whereas, the average house prices hit £269,000 in May, with annual growth of 3.9 %.

Why it matters:

Slowing rent growth offers slight relief to tenants, but rents are still rising twice as fast as wages in many regions. Steady price growth shows sales demand remains resilient despite election noise.

Building Safety Levy Regulations Presented In Parliament

The draft from the Building Safety Levy (England) Regulations was tabled on 10 July. If approved, a per-unit levy on most new residential developments will start on 1 October 2026 to help fund building-safety remediation.

Why it matters:

Developers must start factoring the levy into land bids now; higher build costs could spill into prices for new-build buyers.

What’s the Bigger Picture?

July’s policy blitz shows the government is sticking to its “quality and safety first” message. Tougher rental standards, the building-safety levy, and revived leasehold reform all point to higher compliance costs, but also a more professionalised market. Expect an August rate decision to set the tone for autumn mortgage pricing, and keep an eye on final Commons votes that could push the Renters’ Rights Bill onto the statute book before year-end.