How will the Bank of England's updated inflation forecast impact UK property yields and investor returns for 2026?

Quick Answer

Bank of England inflation forecasts impact interest rates, directly affecting BTL mortgage costs and subsequently net rental yields and investor returns.

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BoE inflation forecasts impact BTL yields. With base rate at 4.75% (Dec 2025) & BTL rates 5.0-6.5%, prepare for compressed net rental yields & higher holding costs.

This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.

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