Inflation falls to 2.8%
Industry response to the latest inflation figures and their impact on the housing market.
Nathan Emerson, CEO of Propertymark
“It is very welcome news to see inflation dip this month; however, today’s figures still sit some distance away from the Bank of England’s target rate of 2%. It remains important to consider continued overall uncertainty and unrest globally, and the potential worries and anxieties brought directly into the homes of many consumers regarding their outgoings.
“It remains difficult to precisely foresee potential hurdles many consumers may face over the coming months. It is important that people consider real-world disruption, such as possible higher mortgage rates and increases in energy prices, as the year plays out.
“Should people find themselves in a position where they are worried about their mortgage repayments, they should proactively speak with their lender at the very first opportunity, as they have a duty to help where possible and will also be keen to do so if they can.”
Daniel Austin, CEO and co-founder at ASK Partners
“While the fall in UK inflation is a welcome development, the property market remains cautious about the broader economic impact of the Iran conflict and the potential for renewed price pressures to emerge in the months ahead. Households, buyers and developers recognise that current inflation data may not yet fully capture the secondary effects of rising energy and supply chain costs. At the same time, the UK mortgage market is already showing signs of strain, with nearly 1,000 products reportedly withdrawn since the conflict began. As a result, investment activity is likely to remain concentrated in structurally resilient, income-driven sectors such as build-to-rent, co-living, logistics, self-storage and data centres, where chronic undersupply continues to support long-term demand.
“Ultimately, a sustained and credible downward trajectory for inflation remains the key catalyst for unlocking stalled development activity. While today’s figures will strengthen expectations for future rate cuts, the Bank of England’s cautious stance reflects the uncertainty still surrounding the inflation outlook, particularly against a backdrop of geopolitical instability. Until greater clarity emerges, both developers and investors are expected to remain selective, with capital favouring disciplined, income-focused strategies. In this environment, real estate debt continues to offer a pragmatic route to deployment while helping to mitigate downside risk.”
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