A further increase in interest rates could have far reaching effects on the UK housing market according to SmartNewHomes.com
The leading property website has said that if interest rates are raised when the Bank of England's monetary policy committee meet tomorrow, it would have unfavourable effects on the entire economy and result in a downturn in the market.
David Bexon, chief executive of SmartNewHomes.com, said the four rises last year had a rapid effect on the market and but a break on the house prices.
"Consumers are nervous and this is showing both in the housing market and on the high street, with buyers reluctant to commit to sales and spending down over the Easter period.
"Increasing rates at this time will be the final straw for many homeowners and consumers, especially those with large mortgages , and the unfavourable effects will be seen across the economy."
A separate independent study carried out by Datamonitor released today shows that mortgage lending in the UK would decline by over ten per cent in the next three years according to new research.
It forecasts that mortgage lending will fall from £292 billion in 2004 to £264 billion by 2007.
Possible rise in interest rate troubles mortgage payers
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Possible rise in interest rate troubles mortgage payers
Wed, 06 Apr 2005
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