Prospects of cuts in UK interest rates in 2026, which were widely expected at the start of the year, were rapidly extinguished when the Iran war started at the end of February. The renewed threat of inflation means the Bank of England is now expected to raise rates at least once this year, with mortgage costs staying higher for longer.
The boss of Britain’s largest housebuilder said on Thursday it was the most challenging time to be a first-time buyer since the 2008 financial crisis.
