Comment on the latest ONS inflation figure from Target

20 December 2023

Katie Pender, managing director of Target, says: “Today’s inflation figure is better news than expected and we are seeing progress towards the Government’s target of 2%. This may be due in part to the positive effects of the Bank of England’s increases in interest rates trickling through.

“Will borrowers start to feel more confident now that inflation and mortgage interest rates are falling? While these headlines offer hope, many homeowners are yet to come off historically low fixed rates and move to higher rates. Affordability will remain a major challenge. In addition, the housing crisis continues, with not nearly enough homes being built. The Home Builders Federation revealed earlier this week that the number of planning permissions being granted for new homes has fallen to another record low.

“As an industry we can help lenders and borrowers by providing a service based on fast and reliable technology systems that put the customer first.”