Industry Comment on UK inflation rising to 3.4%
UK inflation rises for the first time in 5 months.
Industry reactions on UK inflation rising to 3.4%
Nathan Emerson, CEO of Propertymark:
“To witness inflation creep back upwards again will no doubt be disappointing for many consumers who will have been hoping to see a drop as we move further into the first quarter of 2026. With luck, this will prove to be a small blip in what has otherwise been a sustained downward trend over recent months.
“However, some lenders have already started to offer more competitive mortgage deals, which should help invigorate the housing market throughout the year, alongside the general improvement in mortgage availability that has recently been highlighted by the Bank of England.
“Should inflation continue to trend downward overall during the course of the year, we should start to see a more buoyant mortgage market, reflecting a greater degree of affordability not seen for some time. This would be very welcome news for anyone hoping to approach the buying and selling process.”
Daniel Austin, CEO and co-founder at ASK Partners:
“The uptick in inflation is a reminder that the journey back to target will not be linear. While the broader disinflation trend remains intact, it reinforces the ‘higher for longer’ backdrop and helps explain why households, buyers and developers remain cautious. Mortgage pricing has improved and recent rate cuts are welcome, but it will take time for any meaningful easing in monthly costs to feed through, leaving confidence fragile for now.
“In property, mainstream buyer activity remains subdued while capital continues to gravitate towards structurally resilient, income-led segments such as build-to-rent, co-living, logistics, self-storage and data centres, where chronic undersupply underpins demand. A clearer downward path for inflation, with rates moving towards the 3.5–3.75 per cent range, would be the real catalyst for unlocking stalled projects. Until then, disciplined, income-focused strategies, particularly real estate debt, remain an attractive way to stay active while managing downside risk.”
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