Today’s inflation figures offer little in the way of surprises—but for those in the mortgage and property market, the implications are still significant. With the Bank of England’s next rate decision just a day away, a steady 3.4% reading won’t do much to ease the pressure on borrowing costs or unlock affordability for would-be buyers.
Although last month’s quiet revision from 3.5% to 3.4% to the CPI figure has raised eyebrows over data quality, most attention now shifts to what the Bank does next. Whether rate cuts are delayed or drawn closer, today’s data will shape lender strategies, buyer confidence and pricing conversations in the weeks ahead. Here’s what the professionals had to say:
Kevin Roberts, Managing Director, Mortgage Services, L&G comments:
“It’s encouraging to see momentum building in the housing market as we head into the busy summer period, even after the flurry of activity ahead of the stamp duty changes. The May base rate cut to 4.25% has dovetailed with a new wave of innovative mortgage offerings, creating a highly competitive environment for lenders and a bounty of opportunity for buyers. Our broker data shows that first-time buyers are particularly active, accounting for nearly 60% of purchases since the start of the year. In a rapidly evolving market, speaking to a mortgage adviser is more important than ever to secure the right deal for your needs.”
Nathan Emerson, CEO of Propertymark, comments:
“Although not the drop that many people would have hoped for, especially as we head towards the summer months, which are traditionally the busiest periods of the year for the housing market, we now know that inflation was reported as being 0.1 per cent higher than what was actually the reality for last month, due to a data gathering error.
“All eyes will be on the Bank of England tomorrow as to whether they reduce the base rates further in response to today’s news, and the changing trends of the international economy. A drop in rates would, of course, further help stimulate the housing market, which is a vital engine of economic growth.”
Nick Hale, CEO of Movera, commented:
“Rising inflation at this stage, driven by energy costs and early seasonal spending, puts policymakers in a difficult bind. It prolongs the Bank of England’s caution, pushes out the prospect of cheaper mortgages, and increases the likelihood of a ‘higher-for-longer’ rate environment — even as the housing market shows early signs of recovery.
“This creates a tension across the homebuying chain: activity is up, listings are strong, and Q1 GDP growth offered a glimmer of optimism — but the financial foundations are still fragile. For buyers, a shifting rate outlook can undo months of planning in a single day. For conveyancers, it means more recalculations and renegotiations — especially where affordability is already stretched.
“At Movera, we’re seeing a market moving faster than policy can catch. So the job for us, and for the firms in our group, is to close the operational gap — making transactions more resilient against external shocks. That means better tech, more integrated advice across legal and financial lines, and an unrelenting focus on trust and timing within the chain.”
Simon Webb, managing director of capital markets and finance at LiveMore, comments:
“The easing inflation today may boost the chances of a rate cut from the Bank of England tomorrow, sooner than previously expected.
“Lower inflation strengthens confidence across the mortgage market and could bring renewed energy among borrowers who’ve been holding back. For the later life sector, where financial needs are often more complex, this stability is particularly valuable.
“We continue to see strong interest from borrowers over 50 who want flexible lending options that align with their retirement goals or income mix. The long-term fundamentals of the later life lending market remain robust, and today’s data is another step in the right direction for both brokers and consumers looking for certainty.”
Martyn Smith, CEO of Black & White Bridging, said:
“A rise in inflation may unsettle mainstream lending, but it often sharpens the case for short-term finance. In times of volatility, speed, flexibility and certainty carry more weight — and that’s exactly where bridging excels.
“We’re already seeing a significant uptick in demand across refurbishment, chain break, and development exit routes. Inflation pushing out expectations of a base rate cut may cool sentiment in the high street mortgage market, but specialist finance is increasingly where momentum lives.
“The bridging sector has started 2025 with real purpose, and inflation moving in the wrong direction only reinforces our value. At Black & White, we’re focused on being quick where others are cautious — providing funding clarity when mainstream lenders pull back or pause.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said: “Inflation holding firm in May feels like a rebalancing after April’s figures reflected the likes of Easter air fares and many one-off factors, while higher costs at the supermarket and on other household goods in May prevented any chance of making positive progress. While stability is good, I still wouldn’t be planning my rate cutting party for tomorrow’s MPC decision as the central bank is likely to keep to its careful and gradual approach. That is also true given fresh escalation in the Middle East which is likely to cause volatility – particularly when it comes to oil prices – and push costs higher.
“Away from geopolitical tensions, there are some positives on the horizon for inflation – most notably the 7% cut to the energy price cap in July – which will have a positive influence on inflation. Alongside its own predictions on inflation, the central bank will be paying close attention to a rise in unemployment and an economy that is shrinking. This will no doubt play into its decision making and will encourage some movement on the base rate. Improving swaps will create opportunities for lenders, which will be welcome for potential borrowers.
“Even so, what is encouraging for us is that clients are still coming through the door in good numbers, whether it’s for valuation requests, buyer registrations or mortgage appointments. Key to this is the proactive approach of advisers to answer the appetite in the market and demonstrate the opportunities already available for borrowers at every stage of life.”
Commenting on inflation holding providing some reassurances with interest rates pending, Daniel Austin, CEO and co-founder at ASK Partners, said: “Today’s hold in UK inflation offers some reassurance following recent volatility and a continued interest rate hold by the Bank of England. With global uncertainty, fuelled by tariff tensions and ongoing domestic tax changes, still weighing on markets, the key question now is whether the Bank’s rate pause remains sustainable.
“For homeowners and buyers, hopes of lower borrowing costs remain high, but persistently elevated fixed mortgage rates could delay any real relief. While house prices have stalled since the end of the stamp duty holiday, any drop in swap rates, sparked by Trump-related volatility, could revive momentum if it feeds into better affordability.
“Investors and developers are watching closely. Appetite remains strong in resilient sectors like co-living and build-to-rent, where supply constraints keep capital active. But a stable, downward rate trajectory is key. If rate cuts come, it could reignite activity, but with uncertainty still high, staying nimble is essential.”
Matt Smith, Rightmove’s mortgage expert says: “As the rate of inflation stays above 3%, the expectation is that the Bank of England is set to act cautiously. Anticipation had risen that we may be in line for multiple Base Rate cuts this year at the peak of tariff uncertainty, but as some of these pressures have eased, this expectation has fallen back. Forecasts for the rest of the year are likely to jump around a bit due to ongoing global uncertainty and changes in how the market expects things to pan out. However, the current view is that we’re only expecting one more Base Rate cut this year, and tomorrow’s decision by the Bank of England is likely to be a hold.
As for average mortgage rates, these have stayed pretty flat for the last few weeks as the opportunity for lenders to lower rates has reduced. Despite this, we’re seeing an active housing market at the moment, with May having been the strongest full month for agreed property sales since March 2022.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau comments:
“With inflation holding at 3.4%, it’s crucial to look at the broader picture if you’re thinking about getting a mortgage. We’re seeing more innovative mortgage products and increasingly flexible lending criteria becoming widely available. Plus, interest rates are significantly lower than they were this time last year.
“All eyes remain on developments across the pond, which will likely continue influencing swap rates and inflation throughout the summer. Despite this, lenders are still very much keen to lend, making it an extremely positive market for borrowers to take that first, or next, step on the ladder.
“If you’re currently renting and considering taking the leap into homeownership, your first port of call is to speak with a mortgage broker. With so many options out there, they can help you get mortgage ready and secure a deal that aligns with your financial situation.”
