A Staffordshire estate agent has called on the Bank of England to make the recent interest rate rise its last for some time – in order to give the property market some breathing space.
Interest rates were increased from 4% to 4.25% by the Bank of England’s monetary policy committee last week following the surprise jump in inflation to 10.4%.
Now North Staffordshire-based Adrian Knapper has expressed concerns about an increase for the 11th consecutive month and its impact on the cost of borrowing.
The former Stoke-on-Trent City Councillor – who runs Adrian Knapper Estate Agents, which is part of the country-wide Exp UK network – said: “The move, although expected by many, was still labelled as a disappointment by professional people like myself working in the housing market.
“The UK housing market has seen its ups and downs this past year, and the latest interest rate increase has come as another blow.
“Only time will tell what effect this rise in interest rates will have on house prices and sales volumes.”
According to property experts, as of November last year the UK’s average house price stands at £294,910 – more than 10 per cent up on the previous year.
While average house prices have come down a little, they have not fallen as far as many had first anticipated they would.
The knock on to the consumer is illustrated in the latest Property Tracker Survey carried out by the Building Societies Association.
According to the data, only 18% of people think it is now a good time to buy a new home – with 43 per cent saying it is not a good time to buy (that increases to 59 per cent among first time buyers).
Adrian, pictured above, added: “While the Bank of England’s Monetary Policy Committee has deemed this increase necessary to manage inflation, it has nevertheless been met with much apprehension by those in the property industry.”
“I hope that the latest rise in interest rates is the last and that the UK housing market can find more solid ground in the months ahead.”
