Industry Response to Latest Inflation Figures
With Inflation falling by 2.8%, here are some thoughts from the Industry.
Nathan Emerson, CEO at Propertymark:
“This news will provide relief to many homeowners considering both the domestic and international pressures that the UK economy is currently facing and shows that the Bank of England’s cautious path last week to keep interest rates at 4.5 per cent is providing stability.
“This drop in inflation should also provide a positive backdrop to the Chancellor’s Spring Statement later today as she looks to curb some department spending. Many people approaching the housing market will likely feel a welcome degree of optimism, especially considering the spring and summer months tend to be the busiest times of the year for the housing market.”
Daniel Austin, CEO and co-founder at ASK Partners:
“A slight dip in UK inflation offers a welcome signal following last week’s interest rate hold, though it highlights the ongoing balancing act amid Trump-driven market volatility, evolving tariff policies, and potential UK tax changes from today’s Spring Statement. The key question now is how quickly lenders adjust mortgage rates and whether this pause on rates holds. For homeowners and buyers, the desire for lower borrowing costs is clear, but persistently high fixed mortgage rates may limit immediate relief. Still, a more stable rate environment could gradually rebuild buyer confidence, especially among those waiting for clearer economic cues.
“For investors and developers, the path toward rate cuts remains pivotal, with even a modest inflation drop supporting that trajectory. Demand continues to thrive in resilient, high-growth sectors like co-living and build-to-rent, where persistent supply shortages keep capital flowing. As potential policy shifts and economic changes loom, agility is crucial. If rates ease, as some anticipate, it could fuel a more sustained recovery in transactions and investment flows. However, with uncertainty still clouding the outlook, strategic financial planning remains essential to navigating what comes next.”
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