Rising tensions involving Iran are already feeding into higher global energy prices—pushing inflation up and reducing the likelihood of near-term interest rate cuts in the UK.

For London landlords, this has immediate implications.

📈 Higher rates, higher costs

Mortgage rates are expected to stay elevated, particularly affecting buy-to-let products. Many landlords refinancing in 2026 are facing significantly higher repayments than in previous years.

🏠 Rental market impact

Increased borrowing costs are continuing to put upward pressure on rents, especially across London where demand remains strong. At the same time, higher mortgage rates are keeping more tenants in the rental sector for longer.

⚖️ Key considerations

• Factor in sustained higher finance costs
• Review rent levels carefully against market demand
• Maintain tenant stability to avoid void periods
• Stay alert to further rate volatility if inflation rises again

🔎 Bottom line

Global instability is reinforcing a “higher for longer” interest rate environment. For landlords, that means tighter margins—but also continued rental demand across London.