Industry response to latest inflation figures

Nathan Emerson, CEO of Propertymark, comments:

“Unfortunately, any increase seen within the rate of inflation does brings very justified concerns to consumers, many of whom are still struggling with the cost of living, which has been steadily rising over the past few years.

“Although there is more work to be done to help ensure inflation tracks back down towards the Bank of England’s target of two per cent, we have seen three base rate cuts across 2025, which have provided instant benefit to those on tracker mortgages and additional new competitive rates from many lenders.

“It remains important that the UK Government and devolved administrations keep a tight focus on the fact that housing plays a central role in providing consistency within the UK economy and that delivering a range of sustainable housing options brings both long-term stability and an opportunity for regional growth.”

Daniel Austin, CEO and co-founder at ASK Partners, said:

“Today’s rise in UK inflation demonstrates how the balancing act between volatile global conditions, driven by Trump-era uncertainty and domestic policy shifts, is becoming harder to maintain. With the recent interest rate cut bringing the base rate to 4%, and analysts predicting two further rate cuts this year, many will be asking what this sticky inflation might mean for the Bank of England.

“For homeowners and buyers, hopes of lower borrowing costs remain following the recent rate cut, but persistently elevated fixed mortgage rates could delay any real relief. With forecasters expecting the UK’s 2% inflation target to remain unmet for the remainder of the year, homeowners look set to face continued mortgage cost pressures for some time.

“Investors and developers will also be watching closely. Appetite remains strong in resilient sectors like co-living, build-to-rent and storage, where supply constraints and healthy demand keep capital active. But a stable, downward inflation trajectory will be key. If these predicted BoE rate cuts do materialise, it could reignite activity. Meanwhile, there may be opportunity present for the most nimble of investors to capitalise on a potentially cooler market.”

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