Bank of England policymaker Megan Greene has said the case for raising interest rates is growing, warning that tighter monetary policy may be needed in the next few weeks or months as the inflation impact of the Iran-linked energy shock feeds through the UK economy.
The intervention matters because it lands just two weeks before the Bank’s 18 June rate decision and shows support for another hike is no longer limited to one dissenter on the Monetary Policy Committee. For landlords, that sharpens the risk that buy-to-let pricing will stay high or move higher again just as many investors were hoping funding costs had peaked.
That matters now for landlords because lenders have already been repricing loans as swap rates and inflation worries move higher. A fresh Bank rate increase would add pressure to remortgage budgets, stress-test calculations and portfolio expansion plans through the summer market.
Greene shifts the tone before the June decision
In a speech at the University of Derby Business School, Greene said the recent jump in energy prices had already started to show up in the UK inflation picture. She argued the bigger risk would be allowing above-target inflation to settle into wage setting and price setting behaviour, which could force a larger policy response later.
That is a tougher line than the market had wanted to hear after the Bank left rates unchanged at its last meeting. Greene’s comments suggest some rate-setters are becoming more concerned that the latest energy shock could spill beyond fuel and utilities into broader inflation over the second half of 2026.
For landlords using variable or short-term finance, that keeps the near-term outlook awkward. Even where base rate changes do not feed straight into a fixed product, expectations of a higher-for-longer path can still push funding costs up across the specialist buy-to-let mortgage market.
Why landlords should watch funding costs, not just the headline rate
Recent Landlord Knowledge coverage has already tracked the squeeze building in landlord finance. Landlord Knowledge reported in May that softer CPI data was not enough to guarantee cheaper borrowing, while a separate Bank of England lending update showed mortgage approvals rising even as borrowing momentum cooled.
This follows Landlord Knowledge’s coverage of falling inflation and weaker mortgage borrowing data, both of which pointed to a market still highly sensitive to rate expectations. Greene’s latest warning suggests that sensitivity has not eased and may intensify again ahead of the June decision.
The practical point for landlords is that product choice may narrow quickly if lenders move to protect margins. Investors with remortgages due this summer may want to compare options sooner, while those weighing acquisitions need to test deals against a more expensive debt scenario rather than assume rates only move one way from here.
The Bank of England’s summary of Greene’s speech said the conflict in Iran had sent energy prices soaring and raised fresh questions about how the shock could spread through the wider economy. Landlords watching the speech can read the full Bank of England summary here.
What this means for landlords
- If you’re remortgaging soon: Review options early because lender pricing could move again before the Bank’s 18 June decision.
- Watch for: Any further rise in swap rates or lender withdrawals, which can hit buy-to-let deals before the base rate itself changes.
- Bottom line: Hopes for a smoother path to cheaper landlord borrowing have taken another hit.
Editor’s view
Landlords do not need a rate rise to feel the pain of rate-rise expectations. Greene’s speech is a reminder that mortgage pricing can worsen well before Threadneedle Street actually votes, so investors waiting for a clear all-clear may be waiting too long.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 4 June 2026
Sources: Bank of England, Megan Greene speech summary
Related reading: BoE: mortgage approvals rise but borrowing cools in April
