The Bank of England held interest rates at 3.75%, but it was a narrow 5-4 call. The 2026 GDP forecast was revised down from 1.2% to 0.9%. CPI is inflation expected to hit the 2% target in April, and a further rate cut is likely in March or April.

The S&P Global UK Manufacturing PMI came in at 51.8 in January vs 50.6 in December – a 17-month high, with business optimism at a near 18-month high. Similarly, the Institute of Directors (IoD) Economic Confidence Index jumped significantly to -48 in January from -66 in December.

COMPAGNIE DU PARC LIMITED and Revcap Advisors Limited have bought Bligh’s Meadow retail scheme, Sevenoaks, which was marketed for £26.7m.

LaSalle Investment Management has sold Hersham Green Shopping Centre to Waitrose & Partners for >£22m.

Zenzic Capital and Torsion Group has refinanced three UK PBSA assets through a £63m loan with Cerberus Capital Management.

Barclays is providing Long Harbour Ltd with a £66.8m debt facility to support the growth of its Single Family Housing Fund.

Supermarkets confirm strong Christmas trading:

Lidl GB had a +10% rise in sales and record footfall; Aldi UK had +3% growth; Sainsbury's had +4.6% growth and sixth consecutive Christmas market share gain. Tesco had +3.2% LFL growth; M&S saw food sales up +6.6%; and Morrisons had LFL +3.4%.

British Property Federation reports that just over 67,300 BTR homes were granted detailed planning consent last year, representing a 17% y/y increase.

LRC Group has a bought a 118-flat BTR block in Hounslow from Europa. It was being marketed at £50m.

Unite Students has finalised its £390m JV partnership with The Manchester Metropolitan University for the redevelopment of Cambridge Halls to deliver >2,300 beds.

British Property Federation reports that 81% of commercial buildings in major cities across England have an EPC rating below B. Will the government push ahead with tougher minimum EPC standards for commercial property?

Mark Charlton – Real Estate Research Consultant at Waypoint