Today’s news about inflation topping the 2% target (driven by consumer spending and rising fuel costs) opens up the question of a possible rise in interest rates. and House prices are still soaring (thanks to the Stamp Duty holiday among other things), but mortgage holders are paying out less in interest payments.
The Bank of England is reporting[££] that average mortgage interest rates had fallen to their lowest level on record – 2.07% (average rates in October 2008 were 5.82%!).
The pandemic has pushed first-time buyers into delaying plans to get into the property market[££] with home-movers outstripping first-time buyers[££] in terms of housing transactions.