Commercial Property Investors Warned to Prepare for Higher Interest Rates

The Bank of England's base rate has remained at 3.75pc, but commercial property investors should prepare for higher interest rates, shifting yields, and refinancing pressure.

Inflation is back, with the Consumer Prices Index (CPI) rising to 3.1pc in August 2026, above the 2pc target.

The cause of this inflation is a supply-side energy shock due to conflict in the Middle East, pushing oil prices over $100 a barrel and dragging energy prices up worldwide.

Kevin Atkins of Arnolds Keys warns that investors should prepare now rather than react later, as higher interest rates will impact debt capacity, yields, and development projects.