With inflation stuck at 3.8%, households remain under pressure – but there are signs the peak may have passed. For would-be buyers, high living costs continue to make saving for a deposit challenging, with over half of renters citing it as their biggest barrier. Yet, with greater borrowing power, product innovation and broker expertise, new opportunities are opening up to help clients achieve homeownership sooner than expected. All eyes turn to The Bank of England’s rate decision tomorrow which will be closely watched.
Mortgage and property professionals share their responses to the latest announcement:
Ben Thompson, Deputy CEO, Mortgage Advice Bureau, said:
“While inflation holding means we’re still some way from the 2% target, it suggests that the bumpy ride may be leveling out. It’s widely believed that we’re nearing the peak, and this result supports the idea that a gradual decline is on the horizon.
“We know that these rising costs can make saving feel impossible. Our latest research confirms this, showing that 56% of renters see saving for a deposit as the biggest hurdle to homeownership. The good news is the days of needing a massive deposit are behind us. Thanks to increased borrowing power and the greater range of innovative products available, now is an excellent time to explore your options.
“With the expert guidance of a mortgage broker, homeownership is closer in reach than you think. They can help you navigate the market and find a deal that fits your unique financial situation, including the range of low or no deposit mortgages available.”
Martyn Smith, CEO at Black & White Bridging, said:
“For prospective borrowers waiting in the wings for a better deal, this could be a game-changer. It’s now critical the Bank of England cuts the base rate again tomorrow to instil further confidence in these borrowers and help landlords and other businesses currently struggling under the weight of high interest rates.
“We must increase opportunities for investment. We must boost borrowing. We must give borrowers a chance.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said:
“Inflation holding steady will have certainly caught many by surprise, as the general consensus was we would see inflation reach double the Bank of England’s target. While this is unexpected and certainly positive news, I still don’t think I’d be planning a rate cutting party for tomorrow. But what it could mean is far better odds for a change in November which had recently seemed off the cards.
“Despite the economy flatlining in July, inflation is still proving particularly stubborn, along with pretty fierce headwinds caused by both global and domestic pressures. As a result, managing inflation still wins the Bank of England’s tug of war instead of stimulating the economy – for now at least.
“Nonetheless, we have seen a good start to September with positive activity across all areas of our business – whether that’s buyer registrations, valuation requests or mortgage appointments. It shows that despite the pressures households are facing, there is still appetite to push on with plans to buy or sell. Key to this is the proactive approach of brokers to stay visible and support clients in navigating the market and their options. No matter what happens to inflation or interest rates, this must remain a priority.”
Matt Harrison, Customer Success Director at Finova Broker said:
“Stability is something but it’s unlikely to trigger a surprise base rate cut tomorrow. Many clients will still err on the side of caution and wait for the smoke to clear before borrowing if they can help it.
“During this period of calm, brokers will need to be agile. This is no time to wait for new business to fall into your lap. Those who can demonstrate added value will catch the eye of clients still prepared to invest. With the interconnectivity provided by the Finova Broker CRM, brokers can be proactive when it comes to spotting a remortgage or product transfer opportunity, while the efficiency and compliance tools carve back time to focus on nurturing relationships with your client base.”
Simon Webb, managing director of capital markets and finance at LiveMore, said:
“With the market widely expecting inflation to rise, today’s figures will be seen as a surprising but positive development. While it’s unlikely the Bank of England will respond immediately and cut rates tomorrow, steady progress towards the target of 2% inflation could create the space for rate cuts later in the year.
“For borrowers, particularly those in later life, this could bring a renewed sense of stability and confidence when it comes to financial planning. We know many over-50s are still navigating borrowing well into retirement, often while balancing other responsibilities such as caring or part-time work.
“As the outlook improves, it’s an opportunity to reframe the conversation around later life lending, not as a niche market, but as a growing and diverse segment requiring thoughtful, long-term financial solutions.”
Daniel Austin, CEO and co-founder at ASK Partners, said:
“Today’s unchanged UK inflation to points to a bumpy and uncertain road ahead. Policymakers are caught between volatile global conditions, exacerbated by ongoing uncertainty, and shifting domestic policy. Markets still expect another rate cut before year-end, but with the Autumn Budget looming, the MPC is likely to hold fire until there’s clarity on the Chancellor’s fiscal plans. A premature move would be a leap of faith.
“For homeowners and buyers, the hope of lower borrowing costs lingers, yet persistently elevated fixed mortgage rates mean relief is not imminent. With inflation unlikely to return to the 2% target this year, mortgage pressures look set to persist. Investors and developers will also be watching closely. Resilient sectors such as co-living, build-to-rent and storage continue to attract capital thanks to tight supply and strong demand, but a stable downward inflation trend is critical to unlocking broader activity. Should the predicted BoE cuts arrive, they could act as a spark, but for now, only the most agile investors may find opportunities in a cooling market.”
Nathan Emerson, CEO of Propertymark, said:
“Considering the Bank of England had predicted that inflation could stand at 4 per cent this month, it is positive news to see aspects have remained steady overall, and that we have witnessed three base rate cuts across the year to date, all of which have helped consumer affordability.
“There is still more work to do to help ensure that inflation falls to 2 per cent, which is in line with the Bank of England’s own overall ambition. As we approach the autumn months, where spending priorities often take different directions, there are widely held hopes to see inflation pressures ease in key areas.”
