Rating the housing market

One of the leading mortgage lenders insists that the recent interest rate rise will not hit the housing market.

The Halifax expects the increase from 0.25% to 0.5% to have a minimal impact with competitive mortgage rates and high employment likely to keep demand strong.

Its comments came as it released its latest property price index, which showed a year on year increase of 4.5% in house prices – bringing the average price of a UK home to a new record high of £225,826.

Halifax managing director Russell Galley said: “We do not anticipate the base rate rise will be a barrier to buying a house.”

Of course, there are other indices– all using different criteria, as our Sales Manager Tim Bourne has explained previously – so all have to be taken on their own merits.

An interest rise has been expected for some time, so most homeowners and homebuyers seem to be remaining pretty calm about it.

It does seem as if there may be a 0.25% rise next year and potentially a second to take the interest rate to 1% - but this is still incredibly low compared to the long term averages and will be welcomed by savers! (Picture: Pixabay)