Bank of England raises base rate by 0.5% to 5%
Despite concerns that a higher rate will damage the property market the BoE believes getting inflation under control is a top priority.
· Inflation is currently running at 8.7%, down from recent months but far above the BoE's 2% target
· This is the 13th interest rate rise since beginning of last year
· Huge food prices in particular are driving up the nation's overall inflation figure
James Kirk, Managing Director (pictured) says:
''This further rise is sure to put further pressure on the housing market meaning more stress on homeowners and impact confidence in the market.''
''So far this year the market has remained extremely resilient with lower overall volumes but nevertheless we still have plenty of motivated vendors and buyers who despite the cost of living and rising cost of borrowing have stayed focused with their house moving plans.''
''We expect the impact of further interest rates to feed through slowly as current sale pipelines will see buyers and sellers wanting to take advantage of current mortgage offers and buyers early on in their purchase search who have been financially qualified will have been quoted higher fixed rate mortgages by lenders in anticipation of today's expected increases."
''We hope that the BoE's decision to 'go-hard' will help inflation significantly drop in the second half of the year which would go some way to stabilising confidence.''
Please contact Alexanders for friendly, experienced advice whether you are selling, buying, renting or just need some help.
