The interest base rate has been increased by a quarter percentage point today, it has been announced.
Concluding their two-day meeting regarding the UK’s economic performance, the Bank of England’s monetary policy committee has elected to increase interest rates to 5.75 per cent.
Buyers of new homes may be interested to read about the decision, which is likely to further increase pressure in the housing market.
Commenting on the decision, David Stubbs, senior economist at the Royal Institution of Chartered Surveyors, remarked: "This latest increase in UK interest rates will further dampen housing demand going forward as first time buyers find their borrowing constrained and households who are coming to the end of their fixed rate deals face a big increase in their monthly payments"
He concluded by warning that a further rate rise may follow later in the year, given the ongoing strength of the economy both at home and abroad and the resilient housing market across the UK.