Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

What Does The Interest Rise Mean For Homeowners in The UK?

With inflation predicted to reach 6% this April, the Bank of England (BoE) has once again increased interest rates, for the first back-to-back hike since 2004. In an attempt to address the increasing living costs within the UK, the BoE has raised interest rates from 0.25% to 0.5% following a meeting last week between those in the Monetary Policy Committee.

Industry reaction
CEO of iPlace Global, Simon Bath, discusses the effects of rising interest rates on the housing market. He says: “The UK has endured historically low interest for years, and this increase in interest means that 2.2m mortgage borrowers with home loans linked to the base rate, are likely to be affected. As interest rates are to increase, loan and mortgage prices will likely follow this trend, meaning that homebuyers will have to pay additional costs to what are already sky-high prices.

“Property prices have continued to soar in most regions of the country, outmatching the average income of Brits with average house prices around the UK over 7 times the average salary – according to Benham and Reeves. This number however, shoots to 9x for properties within London.

“With Government-backed schemes like Help to Buy coming to an end early next year on top of the new interest rates, another rush in transactions similar to the Stamp Duty Holiday deadline could potentially be in the books, as prospective homebuyers attempt to secure more affordable prices in what is already a high demand and low supply arena.”

Want the full article?