Mortgage advisers and property investors are facing fresh questions after the news that UK CPI inflation unexpectedly ticked higher in June, casting doubt over a summer rate cut. Experts from across the industry, including Just Mortgages, Propertymark, and Mortgage Advice Bureau, share their thoughts on what these data mean for affordability, buyer sentiment, and the housing market’s path forward.
Nathan Emerson, CEO of Propertymark, comments: “This news will provide no respite for people who are struggling with their personal finances at a time when there is widespread data suggesting Britain’s finances are in a ‘perilous’ state.”
“Housing plays a pivotal role in the UK economy, and considering the UK Government and the devolved administrations have set themselves ambitious housing targets, it’s important that there is strong affordability to support consumers with their housing ambitions.”
Ben Allkins, head of mortgages and protection at Just Mortgages, said: “The question on everyone’s lips is what impact this jump in inflation will have on the MPC meeting next month. While it has risen and further pressures are likely to push inflation higher throughout the year, disappointing GDP figures for a second successive month and a weak labour market are still likely to deliver the rate cut that is widely expected in August.
“It’s long been clear that the MPC faces a difficult tug of war between managing inflation and supporting economic growth. While we cannot deny that inflation is important and clearly still a challenge, current economic conditions have dictated a need to shift that balance and help pull up the nose. A cut to interest rates next month will give mortgage lenders fresh ammo to look at prices and hopefully create new opportunities for people to kickstart their purchase plans. Given the significant role that housing plays in delivering economic growth, everyone comes out a winner.”
Richard Pike, chief sales and marketing officer at Phoebus, says: “Today’s rise in inflation will be a setback for those hoping to see interest rates come down this summer. With the Bank of England’s 2% target slipping further out of reach, policymakers are likely to remain cautious.
“For the housing market, it means continued uncertainty. While the FCA’s recent decision to relax affordability requirements could encourage more activity among prospective buyers and those looking to remortgage, the real impact remains to be seen. Affordability pressures will persist for many borrowers on existing deals, particularly as fixed-rate terms come to an end.”
“In this environment, it’s vital that lenders stay agile. Having the right technology in place to manage risk, adapt to shifts in sentiment and deliver a smooth customer journey will be key to supporting brokers and borrowers through ongoing volatility.”
Sharon Beedham, relationship director at ONP Solicitors commented: “Rising inflation adds another layer of complexity to an already fragile housing market. While Rachel Reeves’ announcement aims to support first-time buyers with expanded lending and mortgage guarantees, higher inflation could lead to increased interest rates, which in turn could dampen affordability and slow buyer momentum. It creates a difficult balancing act between making credit more accessible and ensuring it remains affordable over time.
“In this environment, speed and certainty in transactions become even more important. At ONP, we’re focused on helping buyers navigate this volatility by improving the efficiency of the conveyancing process. As economic headwinds strengthen, the property industry needs to be ready to adapt — that means embracing tech, improving communication across the chain, and reducing unnecessary delays that cost buyers both time and money.”
Paresh Raja, CEO of Market Financial Solutions, said: “With just over three weeks until the Bank of England’s next base rate decision, this morning’s inflation data feels like it has added significance. The headlines will likely be negative, and the focus from many will be on the fact that inflation is both rising slightly and still above the central bank’s 2% target, but that shouldn’t rule out a base rate cut on 7th August.
The Bank of England’s Governor, Andrew Bailey, recently commented that he would consider lowering the base rate if the labour market continues to soften. And yet, his accompanying caution about cutting rates while inflation remains above 2% continues to frustrate many in the property market. That target now feels like more than a guideline – it’s starting to carry disproportionate and potentially harmful weight.
The Bank has cut rates while inflation was above target in the past. This moment should be no different. Economic growth has stagnated for two consecutive months, so it feels like the right time to stop fixating on short-term CPI trends and start prioritising policies that support recovery. In turn, by cutting the base rate, the Bank would give property buyers and investors the confidence they need to resume their investment plans and encourage greater activity across the property market – and across the wider economy – in the final five months of the year.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau said: “A slight uptick in inflation is a reminder that the path back to target won’t be completely smooth and entirely predictable. While the overall outlook into next year remains downward, persistent pressures—especially in services—may give the Bank of England reason to pause before moving on rates.
It is, nonetheless, a great time to buy. With house prices having adjusted over the last few years, and numerous mortgage options now available, getting on the property ladder is more achievable than it has been in a while. In fact, many aspiring first time buyers who were priced out of the market last year may not realise they’re now in a strong position to buy.
Our recent research shows that 56% of renters would buy a property if their mortgage payments equalled their current rental payments, highlighting a strong appetite among prospective buyers. It’s up to brokers to engage in meaningful conversations with customers, dispelling homeownership myths and educating them on the innovative solutions now available.”
Simon Webb, managing director of capital markets and finance at LiveMore, comments:
“While today’s rise in inflation may delay hopes of an imminent rate cut, it’s important to remember that progress towards economic stability is rarely linear. Setbacks like this are part of the journey, and the broader trajectory still points to easing price pressures over time.
For the mortgage market, particularly later life lending, the focus remains on helping borrowers plan with confidence. Many over-50s are navigating financial decisions that span decades, not just months and short-term volatility doesn’t change the long-term need for accessible, flexible borrowing options.
This moment offers a chance to keep conversations going around how we support financial resilience in later life, ensuring that older borrowers aren’t left behind as the market evolves.”
