A Bolton estate agent says he expects the rise in interest rates will not have a huge impact on the housing market.
Matthew Fish of Harrisons Estate Agent says that despite the rise, interest rates are still at an historic low – and an increase had been predicted.
The Bank has raised interest rates to one per cent from 0.75 per cent as it warned inflation is set to peak at over 10 per cent this year and forecast the economy will contract in 2023, by 0.25 per cent against the 1.25 per cent growth it predicted in February.
It issued a warning that a recession lies ahead for the UK.
Mr Fish told The Bolton News: “The interest rate rises were expected by local property professionals however we still believe the market to remain buoyant as interest rates and lending is still at a historic low.
“We last saw a Bank of England 1per cent base rate in 2009.
“We always like to remain positive, keeping all our clients and neighbours updated with changes in the local market.”
As the Bank Of England warns a recession is likely, Bolton property experts admit they expected the rising interest rates and remain hopeful for the market.
The Band of England has raised interest rates from 0.75 per cent to 1 per cent with inflation set to peak at 10 per cent later this year.
Previously, Harrisons Estate Agents in Bolton predicted a market crash due to rising inflation and the rise of living costs while wages stayed the same.
But now, Matthew Fish says that interest rates and lending are still at a historic low.
He said: “The interest rate rises were expected by local property professionals however we still believe the market to remain buoyant as interest rates & lending is still at a historic low.
“We last saw a Bank of England one per cent base rate in 2009.
“We always like to remain positive, keeping all our clients and neighbours updated with changes in the local market.”
Governor of the Bank of England Andrew Bailey said that further rate rises are likely to be needed “in the coming months” to cool rampant inflation, but admitted that the impact on finances of soaring costs in the short term “is something monetary policy is unable to prevent”.
The Bank of England expects people to find it harder to get mortgages, but finance advisors think that having a good deposit and already being in a good buying position shouldn’t massively affect someone ready to buy.
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