The rise in consumer inflation from 2.0% to 2.2% is “an unfortunate but accepted part” of achieving a stable housing market.

So says Nathan Emerson, chief executive of Propertymark.

Consumer price inflation hit 2.2% in July, back above the Bank of England’s 2.0% inflation target, but so-called core inflation fell to 3.3% from 3.5%, while services inflation eased much more than expected to 5.2% from 5.7%.

Emerson continues: “Households remain in a stronger position than only twelve months previous, but there is potential the Bank of England may reflect on the figures very carefully when the Monetary Policy Committee next meet to decide on interest rates. 

“While Propertymark is keen to see a further lowering of interest rates, it’s essential to bear in mind this process must be carefully considered to keep the economy firmly on track.” 

Ben Thompson, chief executive of Mortgage Advice Bureau, says: “It’s been a good August for those with mortgages and, indeed, first time buyers. A slight uptick in inflation in July therefore shouldn’t dampen spirits too much, and to some degree was expected. 

“However, it’s important to note that inflation holding steady (or indeed falling back down to 2%) in the next few months will be vital to encourage more interest rate cuts from the Bank of England. That path however is also currently expected too. 

“For now, lenders would have already factored in the last rate reduction and will be basing current fixed rates onfuture interest rate expectations, so we wouldn’t expect this to have a big impact on the rates currently being offered.”