Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

UK Inflation Drops to 2.6% in June, Easing Pressure on Property Sector

UK inflation, as measured by the Consumer Prices Index (CPI), fell to 2.6% in June 2026, according to the Office for National Statistics (ONS). This follows a stagnant reading in May, when inflation remained at 2.8% after a dip in April.

The month-on-month CPI increase for June was 0.1%, compared to a 0.3% rise in June 2025. The core CPI, which excludes energy, food, alcohol, and tobacco, was also up by 2.6% in the 12 months to June, showing no change from May’s figure.

The CPI including owner-occupiers’ housing costs (CPIH) rose by 2.8% in the year to June, down from 3% in May. These figures come ahead of the Bank of England Monetary Policy Committee’s (MPC) next base rate decision, scheduled for 30 July.

For UK letting agents and inventory clerks, the latest inflation data may signal a period of relative stability in the property market, as changes in inflation can influence interest rates and, in turn, mortgage costs and rental demand. The report notes that the recent fall in inflation could give the Bank of England more flexibility regarding interest rates.

Letting agents and property professionals should remain attentive to upcoming decisions from the Bank of England, as these may impact borrowing costs and the wider property market.