For the first time in more than 10 years, the Bank of England
has voted to raise the UK interest rates.
This
is the first rise in interest rates since July 2007 and has seen the rate
increase to 0.5% from 0.25%.
The
minor increase in interest rates will mainly effect households on a variable
rate mortgage but the increase will only be minimal, but there will be some
good news for the country's 45 million savers who will see a slightly better
return on there savings.
Will
this effect the housing market? The answer is no. There is still a lack of
properties on the market and many buyers still searching for a property so
there should be no reason why, panic should set in. On average, a households
that owe £89,000, will face rises of between £11 and £12 a month, according to
UK Finance, which is minimal and certainly not something which will trigger
panic across the housing market.
As
we see it, the housing market is business as usual.
If
you are thinking of selling or buying, contact us today and we will be happy to
discuss this with you.
