Interest Rates Hit 1% | How will the Property Market Respond?
As we see the fourth consecutive rise in the UK interest rate, the rate is now at levels that we have not seen in over a decade! Sales Director Jake poses the question of what this means for the property market?
How have we seen the market react to these interest rate changes and what do we see happening to the property market in the year ahead??
Following the 5th of May vote to increase the UK interest rate for the fourth consecutive time, we now see the base rate at 1% - the highest it's been for over a decade!
But how will this affect the UK property market?
The truth is that the banks have seen this rise coming and this has shown with the interest rates being charged increasing inline with this rise in bank rate before it was even announced!
It is also important to remember just how low our rates have been for the last decade. We're starting at such low levels where a high percentage rise will not result in an equally high amount we'll be paying back in interest so the effect it has on us as consumers is not quite as scary as it may sound!
We've noticed this ourselves with the demand for property still relentless as the cost of living crisis and rising interest rates are not quite yet, it seems, impacting consumers' willingness to spend.