Recent data from the Consumer Prices Index (CPI) shows that UK inflation has risen again by 3% in the 12 months to January 2025, up from 2.5% in the 12 months to December 2024.

On a monthly basis however, CPI fell by 0.1% in January 2025, compared with a 0.6% fall in January 2024.

Tim Parkes, CEO of RAW Capital Partners, said: “Following January’s unexpected fall in inflation, many investors will have hoped for a dose of déjà vu this morning – it would have provided more ammunition for the Bank of England to cut the base rate again in March. While this hasn’t materialised, a slight uptick in inflation is no reason to panic.

“For the UK property market, there can often be a prevailing sense of pessimism whenever we they see inflation rise. However, it’s important to remember that the market has had a strong start to the year. House prices have risen according to all of the major indices, while buyer and investor demand is red hot amidst falling rates and ahead of April’s Stamp Duty changes. There’s no reason for these trends to reverse in response to today’s increase, particularly if lenders can provide the adaptability and support that brokers and borrowers will be looking for.”