Inflation Commentary - Molo Finance

18 February 2026

Martin Sims, Distribution Director at Molo Finance said:

"A further step down in inflation towards 2% strengthens the case for at least one more Base Rate cut this year, which would be positive news for landlords and residential buyers, and provide a renewed boost of confidence to the property market.

"We are already seeing renewed interest in UK property from overseas investors and Hamptons has reported that one in five newly incorporated buy-to-let companies in 2025 is owned by non-UK nationals, up from 13% in 2016. Company formations are running 8% ahead of 2024’s total, with around 67,000 expected by year end and, of those, roughly 13,500 will be owned at least in part by non-UK nationals.

"For expat investors, a clear move back to target inflation will signal greater economic stability. The UK’s deep rental market and long history of recovery continue to support its reputation as a relative safe haven. Lower inflation can ease pressure on tenants’ household bills, which supports rental payments and overall portfolio performance. It can also lead to sharper product pricing and more workable stress testing.

"If inflation settles at 2%, it is likely to spur further activity in buy to let. Investors who have been waiting on the side lines may see this as the point to refinance, expand or enter the market with a clearer view on rates."