"[There] are plenty of positives to take in the current climate with movement on rates from different lenders, plenty of money in the market and broad product and criteria options available."
- John Phillips, CEO of Just Mortgages and Spicerhaart
The unchanged reading reflects the first notable slowdown in food price growth since March, offering a modest sign that cost pressures are beginning to stabilise.
Core CPI, which excludes food and energy, edged down to 3.5% from 3.6% in August. While inflation remains nearly double the Bank of England’s 2% target, the data suggest price rises are moderating: a development closely watched by households, lenders and the property sector alike.
Nathan Emerson, CEO of Propertymark, said the figures highlight that “the economy remains sensitive, both domestically and globally.” He noted: “We have seen inflation trend back upwards over the last twelve months; however, we are thankfully in a much better position than we were only three years ago, when the rate of inflation sat at 11.1%.” Emerson added that while the Bank of England faces “a challenging position” on rate cuts, optimism is growing that the Monetary Policy Committee “could consider new dips in the base rate” next year, potentially improving housing affordability.
Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice Bureau, said the latest data “reflect the persistent pressures from political uncertainty and elevated costs,” but pointed out that the mortgage market “continues to remain resilient.” She added: “Many don’t realise they’re now in a prime position to get onto the property ladder — especially compared to this time last year, or even six months ago.” Geddes urged a “keep calm and carry on” approach, highlighting improving affordability, innovative new products, and a 9.7% year-to-date rise in first-time buyer mortgage applications.
Simon Webb, Managing Director of Capital Markets and Finance at LiveMore, described the flat inflation reading as “welcome news for households,” suggesting that the Bank of England’s cautious stance “is continuing to pay off.” He said: “Stability is exactly what the markets were hoping for, and it reinforces expectations that price pressures are gradually being brought under control.” Webb added that for the later-life lending sector, the steadier backdrop presents “an opportunity for borrowers to review their options and focus on long-term resilience.”
Matt Harrison, Customer Success Director at Finova Broker, said inflation “holding steady – and not hitting the Bank of England’s 4% forecast – is a pleasant surprise.” He warned that while the Autumn Budget may bring “tough decisions,” policymakers must introduce “offsetting measures to avoid further inflationary damage.” Harrison also urged brokers to focus on “speed and service” in the current market: “Until the budget dust settles and we get some good news from the Bank of England, locking transactions in with those who are willing to take the risk will be key.”
Although inflation remains sticky, the consensus across the housing and mortgage sectors is cautiously optimistic. Market stability and improving affordability could pave the way for renewed confidence, provided that upcoming policy decisions support sustained progress toward the Bank of England’s 2% target.
Nick Hale, CEO of Movera, said the latest figures raise questions about “whether this is the peak of the inflation curve.” With another base rate cut unlikely before the end of the year, he encouraged brokers to “reach out to clients waiting for clarity” and remind them that “mortgage rates are unlikely to drop this side of the new year.” Hale added that conveyancers should prioritise “process efficiency through data sharing and digital solutions” to keep transactions moving amid continued uncertainty.
John Phillips, CEO of Just Mortgages and Spicerhaart, said that brokers have a role to play in conveying the economic landscape to their clients, adding: “Once again inflation has defied expectations, with CPI holding steady at 3.8% for a third consecutive month. The consensus was that we would likely reach double the Bank of England’s target. This is absolutely welcome news and poses two real questions – have we reached the peak of inflation and what does this mean for the interest rate decision next month? Will this give the central bank some confidence to deliver a much-needed cut?
“The elephant in the room remains the upcoming Autumn Budget with further tax changes likely to feature in the Chancellor’s plans. We saw the inflationary impact of last year’s Budget as employers and businesses passed on the cost of higher taxation to consumers. A similar impact could amplify cost pressures and keep inflation elevated for longer.
“The main focus for much of the market right now will be breaking out of this holding pattern created by a very late Budget. However the Budget falls, getting it out of the way will definitely be helpful in creating more activity. Despite an uncertain outlook, there are plenty of positives to take in the current climate with movement on rates from different lenders, plenty of money in the market and broad product and criteria options available. These are the key messages brokers need to be sharing with clients as they rely on us to help navigate the market.”
