The Monetary Policy Committee voted at eight votes to one to hold rates at 3.75 per cent on 30 April. This follows a similar hold stance from the Fed and the ECB this week. The Bank acknowledged that the energy price shock and continued geo-political uncertainty will mean energy prices and inflation will remain higher than they expected a few months back. But the decision to move rates essentially hinged on which of three scenarios the committee thought most likely over the next two years.
In Scenario A inflation rises to 3.6 per cent by the end of 2026, wages rise a little but fall back to 3 per cent by late 2027 as labour market conditions weaken. As a result, second round effects – essentially higher inflation meaning workers ask employers for (and get) more significant wage increases – are reduced, as a weaker jobs market limits the need to increase wages.
In Scenario B inflation follows a similar path, second round effects are still modest, but wage growth is more persistent, hitting 3.5 per cent in Q1 2027, declining gradually over the year. In Scenario C inflation peaks at more than 6 per cent in Q1 2027. This triggers more significant second round effect, with wages rising and inflation remaining elevated. Following the MPC meeting most members appeared to be leaning towards Scenario B.
But there was some positive news for borrowers as even pre-MPC several larger lenders reduced their fixed rate deals as swap rates (the benchmark lenders use to price fixed-rate mortgages) stabilised after a volatile few months. Barclays re-introducing a sub-4 per cent two-year fix for the first time since March (albeit only for their Premier customers) with HSBC and NatWest also announcing lower rates from 30 April.
Renters’ Rights
The first phase of the Renters’ Rights Act came into force on 1 May. Landlords who already have a written tenancy agreement in place do not need to change it or issue a new one. Instead, they will be required to provide tenants with a copy of the government ‘Information Sheet’ on or before 31 May 2026 Click here to access the Renters' Rights Act Information Sheet. For new tenants landlords will need to provide a written tenancy agreement from 1 May.
Changes introduced on 1 May include:
Assured Periodic Tenancies introduced– Section 21 no fault evictions are now abolished, and most new and existing tenancies becoming Assured Periodic Tenancies. Tenants will be able to stay in their property for as long as they want, or until a landlord serves a valid section 8 notice. Tenants can end their tenancy by giving two months’ notice. Landlords retain access to specific grounds for possession when they have legitimate reasons to reclaim their property. These include persistent rent arrears, anti-social behaviour, or a genuine need to sell or move back in. Rent increases – limited to one a year, with landlords being required to follow a revised section 13 procedure. Notice of rent increases must be given at least two months before it is due to take effect. All rent increases can be challenged by tenants at the Property Tribunal. Rent in advance and bids – Properties must be advertised at a specific asking rent and offers above this amount cannot legally be accepted. Landlords or their agents can no longer request more than one month’s rent in advance. Pet policies - Tenants have strengthened rights to request pets, which must be considered within 28 days. Landlords must provide a valid reason to refuse. Anti-discrimination policies – It is now illegal to discriminate against tenants with children or those receiving benefits. Landlords and letting agents cannot take any action to discourage or prevent these groups from renting, including hiding property information, refusing viewings, or denying tenancies based on having children or receiving benefits.
If you have any questions or would like to discuss the implications of the Renters’ Rights Act as a tenant or landlord, please contact us.
Prime Central London
Prime Central London sales hit their lowest Q1 level since 2020 last quarter, with volumes down 24 per cent year-on-year as global uncertainty dampened buyer confidence. The JLL PCL index shows prices fell 2.2 per cent quarterly and 8.7 per cent annually, with properties under £2 million hit hardest – down 9.8 per cent year-on-year as mortgage-reliant buyers feel the pinch of higher borrowing costs.
The rental market proved more resilient, with lettings up 13 per cent year-on-year as cautious buyers adopt a 'wait and see' approach. Increased stock levels – up 29 per cent – have kept rental growth flat, but the gap between asking and achieved rents for premium properties narrowed, suggesting competitive conditions at the top end.
Five sales over £50 million this year alone (versus one in all of 2025) show the ultra-prime segment remains active. Higher stock levels across sales and lettings will likely moderate prices near-term, though strong letting activity suggests PCL's fundamental appeal endures. Click here to read our latest Q1 PCL report.
Student housing leads with record Q1
Student housing investment topped £2.2bn in Q1 – the fifth-highest quarterly total on record and a rare bright spot in an otherwise subdued start to the year for UK Living. Close to a third came from Unite's acquisition of Empiric Student Property, which completed in January. Student accounted for 60 per cent of the £3.7bn invested in UK Living in Q1 2026, significantly above the typical 35 per cent.
Build to Rent (BTR) had a quieter quarter, though the sale of Ebb & Flow in Reading became the UK's largest ever operational asset transaction. Pension Insurance Corporation paid £200m for the 598-bed scheme – surpassing Greystar's Barking Wharf purchase as the biggest single asset deal on record.
However, it was the only major multifamily transaction, pushing total BTR volumes to £736m – the lowest Q1 figure since 2017. Multifamily investment fell to £257m, though single family performed better at £479m, boosted by Kennedy Wilson and Canada Pension Plan Investment Board's £300m expansion. Click the link to read more in our latest UK Living Roundup April 2026.
JLL’s Residential and Living team consists of over 300 professionals who provide a comprehensive end-to-end service across all residential property types, including social housing, private residential, build to rent, co-living, later living, healthcare and student housing.
Disclaimer: © 2026 Jones Lang LaSalle IP, Inc. All rights reserved. Data within this report is based on material/sources that are deemed to be reliable and has not been independently verified by JLL. JLL makes no representations or warranties as to the accuracy, completeness or suitability of the whole or any part of the report which has been produced solely as a general guide and does not constitute advice. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of JLL. JLL, its officers, employees shall not be liable for any loss, liability, damage or expense arising directly or indirectly from any use or disclosure of or reliance on such report. JLL reserves the right to pursue criminal and civil action for any unauthorized use, distribution or breach of such intellectual property
