Higher gas and electricity bills were the main upward contributors, but this was offset by falling prices for furniture, food, and non-alcoholic beverages
By Shajil KumarFeb 14, 2024
Britain's annual inflation rate remained unchanged in January from the previous month, confounding expectations for an acceleration, official data showed on Wednesday.
The Consumer Prices Index (CPI) stood at 4.0 per cent last month, the Office for National Statistics (ONS) said in a statement.
That was double the Bank of England's target and compared with market expectations of an increase to 4.2 per cent.
Higher gas and electricity bills were the main upward contributor to the rate, but this was offset by falling prices for furniture, food, and non-alcoholic beverages.
"The price of gas and electricity rose at a higher rate than this time last year due to the increase in the energy price cap, while the cost of second-hand cars went up for the first time since May," said ONS chief economist Grant Fitzner.
"Offsetting these, prices of furniture and household goods decreased by more than a year ago and food prices fell on the month for the first time in over two years."
Britain's Conservative finance minister Jeremy Hunt said in reaction that inflation was nevertheless on a downward trend.
"Inflation never falls in a perfect straight line, but the plan is working," said Chancellor of the Exchequer Hunt.
"We have made huge progress in bringing inflation down from 11 per cent, and the Bank of England forecast that it will fall to around 2.0 per cent in a matter of months."
The BoE has hiked borrowing costs to the highest level in 16 years as it tries to cool UK annual inflation.
Inflation has fallen sharply from a 41-year peak of 11.1 per cent in October 2022.
Analysts said Wednesday's data showed that the central bank could decide to cut its main interest rate from 5.25 per cent in the coming months.
"The ingredients remain in place... to start cutting interest rates in the next few months," noted EY analyst Martin Beck, who expects the first reduction in May.
He added: "Overall, the latest inflation data should reassure (policymakers) that the time to start cutting interest rates is approaching." (AFP)
One in five new buy-to-let companies in 2025 owned by non-UK nationals, up from 13% in 2016.
Indian and Nigerian investors lead foreign ownership, targeting regions outside London for higher returns.
Young British landlords (18–24) are expanding portfolios despite older investors exiting the market.
Regional rent growth diverges: London sees declines, while East & West Midlands and North West report strong rises.
Foreign investors leading
Britain’s buy-to-let sector is undergoing a notable transformation as foreign investors and young Britons reshape the landscape. One in five new buy-to-let companies created in 2025 are owned by non-UK nationals, up from just 13 per cent in 2016. This shift shows that foreign investment in British rental property is growing fast and reshaping who controls the market.
A new report on New Investors in Buy-to-Let reveals that this transformation is driven by a combination of younger British landlords and experienced international operators seeking better returns outside London’s saturated market.
The numbers are impressive. About 67,000 new buy-to-let companies will be formed by the end of 2025, with roughly 13,500 owned by non-UK nationals. Indian investors lead the way, creating 684 companies in just the first half of 2025. Nigerian investors follow with 647 companies. Polish and Irish nationals also have significant presence. This change reflects major post-Brexit migration patterns. European Union nationals used to represent 65 per cent of foreign ownership in 2016 but now make up only 49 per cent. south Asian and African investors are now taking the lead.
Young Britons expand portfolios
Several factors explain this shift. First, the British pound has weakened, making property cheaper for foreign buyers. Second, rental returns in Britain remain strong compared to other markets. Indian investors can get rental yields of 4.5 to 5.5 per cent in prime London locations. Third, foreign investors are moving away from expensive London and targeting regions with better returns. The East Midlands, West Midlands, and South West now offer faster rental growth than London.
British landlords themselves show mixed responses to market changes. A 2025 survey by Market Financial Solutions found that 65 per cent of landlords worry that recent budget policies will hurt their investments. Many older landlords have stopped buying new properties. However, younger investors think differently. Only one-third of landlords aged 18-24 have halted their investment plans. In fact, 75 per cent of 18-24-year-olds expanded their portfolios in 2024. Among those aged 55-plus, only 4 per cent plan to grow their property portfolios in 2025.
Young British investors and foreign investors are pursuing similar strategies. Both groups are buying properties in regions with strong growth potential rather than London. Greater London rents actually fell 3.0 per cent in July, marking the seventh straight monthly decline. Meanwhile, the West Midlands saw rents rise 2.7 per cent, and the East Midlands grew 3.4 per cent. This regional split explains why international investors are focusing on cities outside London.
Property shift outside London
Most non-UK nationals structure their investments through British limited companies, a tax-efficient approach. Indian High Net Worth Individuals and family offices increased their investment volumes by more than 17 per cent last year. The Halo development project in South London demonstrates this trend. This luxury apartment complex near the Kia Oval cricket ground is priced from £580,000 to £5 million.
The rental market shows mixed signals. After five years of steady growth, rents on newly let properties fell 0.2 per cent year-on-year in July the first annual decline since 2020. However, regional variations matter significantly. When landlords renew existing tenancies rather than advertising new ones, rents rose 4.5 per cent year-on-year. The North West led with 7.2 per cent increases. Landlords are aligning renewal rates with current market levels to maintain inflation-adjusted returns.
Paresh Raja CEO of Market Financial Solutions noted “The property market isn’t holistic it’s segmented. Some landlords may sell up, but there’s an eager new generation of investors ready to take their place,” The convergence of young British investors and foreign capital is reshaping Britain's property market. As older landlords exit and regulations tighten, a new generation of strategically minded investors both young Britons and international operators is repositioning British property as a key wealth management tool.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.