Bank of England hikes interest rates for the first time in over a decade

int rate details

Have you heard about the rise in interest rates for the first time in over a decade? Here at Stirling Ackroyd Legal our, expect solicitors are always up to date with the current affairs to provide our clients with the upmost diligent service.

Even before the interest rate decision, momentum in the housing market was clearly softening according to a raft of reports including the RICS Residential Market Survey. What is more, the Bank of England figures show a renewed decline in the number of mortgages being approved with the re-emerging downward trend now looking likely to continue over the remainder of the year. Given the current backdrop, it is likely that house price inflation will moderate further over the coming months (currently at 5% according to Land Registry data, although only half of this amount is using Nationwide Building Society data). According to RICS, numbers show significant regional differences in the market with prices still reported to be rising firmly in most areas away from London and the South East of London. Our numbers suggest that capital values at a headline level could increase by a further 6% over the next twelve months.

Housing Market

Our head of New Build Property Department Mr. James Shepherd comments, “interest rate rises are making some clients anxious due to the potential rise in mortgage repayments”.

The South-East London price balance, which also better captures the trend in outer London boroughs, has weakened and now stands in negative territory. The price gauge for the Midlands, for example, remains positive, with prices envisaged to continue rising. Price growth also remains relatively firm across other regions such as North-West England, South-West England and Yorkshire & Humberside.

Commercial Property Market

The South-East London price balance, which also better captures the trend in outer London boroughs, has weakened and now stands in negative territory. The price gauge for the Midlands, for example, remains positive, with prices envisaged to continue rising. Price growth also remains relatively firm across other regions such as North-West England, South-West England and Yorkshire & Humberside.

Head of residential property department Mr Peter Benjamin also comments “although the interest rates are rising this does not stop the market from their being a healthier and stronger growth in the property market. We are looking at a very good year for property in 2018!”.