24-08-2007
Interest rate rises affect regional housing markets
The string of recent interest rate rises has finally begun affecting house prices, most significantly in regional areas of the UK.
According to the results of data released by the National Association of Estate Agents (NAEA), 71 per cent of regional estate agents confirmed that interest rate increases have affected their local housing market in a damaging way.
"The increases have already had a tightening effect on the housing market," said Stewart Lilly, president of the NAEA.
"However, the Bank of England has suggested that there will need to be a further rate rise to at least six per cent before we reach the peak of the cycle," he added.
Nevertheless, the NAEA has confirmed an expectation that any further interest rate rises will be delayed, as inflation fell below its target rate of two per cent in July.
If you're looking for a buy-to-let mortgage or remortgage, now is the time to sort one out, before any further interest rate increases.
Simply Business offers a full service for landlords, finding the best rates and guiding customers through the mortgage process. Low-cost landlord insurance is also available.