Combatting UK Inflation

The UK’s latest inflation figures, released by the Office for National Statistics, show the Consumer Prices Index (CPI) rising to 3.6% in June 2025, up from 3.4% in May, marking the highest rate since January 2024. While below the 41-year peak of 11.1% seen in October 2022, this figure remains above the Bank of England’s 2% target, driven by persistent pressures from food prices (up 4.5% annually, the highest since February 2024) and motor fuel costs, which fell less sharply than the previous year. Despite these challenges, UK retail sales exceeded the 12-month average in May 2025, reflecting resilient consumer spending amid rising costs.

However, the credit market tells a different story. Net mortgage lending contracted in May 2025, continuing a trend of tightening credit conditions, while consumer credit also declined. Households, facing squeezed budgets, withdrew significant savings to maintain spending, with the UK household saving ratio at 10.9% in Q1 2025. This reliance on savings, coupled with elevated borrowing costs—owner-occupier housing costs rose 6.4% annually in June 2025—underscores the liquidity challenges many face.

Against this backdrop, alternative asset-based lending has gained traction as a flexible solution. At Beech Hill Capital, we specialise in luxury asset lending, enabling high-net-worth individuals (HNWIs) and asset portfolio owners to unlock liquidity from valuable collections such as watch portfolios, fine art, classic cars, or jewellery.

Additionally, property bridge lending provides another vital tool, offering rapid, flexible financing for property transactions or refurbishments, particularly when traditional mortgage channels are constrained. By leveraging luxury assets or property, Beech Hill Capital delivers tailored financial solutions to combat inflation, empowering clients to maintain liquidity and seize opportunities in today’s dynamic economic environment.