Yesterday the Bank of England announced it would be hiking interest rates to 3 per cent and made the dismal prediction the UK is about to fall into its most prolonged recession since records began. Despite the changes being widely expected, the biggest interest rate increase in 30 years will come as an unwelcome shock to Bristol homeowners used to record low mortgage rates who are, perhaps for the first time, experiencing a squeeze on their incomes from all sides.
The rate rise has been a long time coming for Dominic Wyatt, a Sales negotiator for Bristol Property Centre, who said the country's economic trajectory has been clear for some time now and expects things will get worse before they get better. He told us in recent weeks he’s already noticed buyer interest has slowed in the smaller properties, which are typically snapped up quickly by those looking to get on the property ladder.
This contrasts sharply with earlier in the year when it became increasingly common for properties, particularly two-bed flats favoured by first-time buyers, to receive multiple competing bids above the asking price. “Properties are being sold, don’t get me wrong. However, it’s not as hot; there are fewer offers over happening,” he said.
