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

UK Inflation Falls to 15-Month Low, Easing Pressure on Housing Affordability

UK inflation reached a 15-month low in June 2026, according to the latest data from the Office for National Statistics (ONS). The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to June 2026, down from 2.8% the previous month.

The 2.6% annual rate matches the figure recorded in March 2025, and inflation was last lower in December 2024, when it stood at 2.5%. On a monthly basis, CPI increased by 0.1% in June 2026, compared to a 0.3% rise in June 2025.

The ONS data indicates that transport, and food and non-alcoholic beverages, made the largest downward contributions to the inflation rate. Despite the easing inflation, household affordability continues to face pressure.

There are concerns that inflation could rise again in the coming months, particularly as the higher energy price cap is factored in. The report notes that July’s 13% increase in the Ofgem energy price cap and ongoing international tensions could impact future inflation figures.

Recent government measures, such as a VAT cut on electricity bills and a cap on most bus fares, are highlighted as potential factors that could help ease inflation in the near term. However, the longer-term impact will depend on how these measures are funded.

For letting agents and inventory clerks, the current inflation trend may influence household budgets and affordability, which can affect rental demand and tenant turnover. The ongoing economic uncertainty means that many households are likely to remain cautious with their finances.