Property experts have warned that prospective home buyers relying on a mortgage could face diminished purchasing power and confidence after Thursday's base rate increase.
The Bank of England's decision to elevate the base rate to 5%, the highest in almost 15 years, aimed at reducing persistent high inflation, has prompted experts to predict a shift towards more "realistic" property prices.
The rate hike could force some landlords to sell, increasing the supply of homes available for purchase, but potentially pressuring the rental market. North London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors (Rics), Jeremy Leaf, said, "The green shoots apparent in the housing market at the beginning of the year have started to wilt, despite continuing support from strong employment figures."
