7% interest rates would send shock wave through housing market

Experts have warned that if the Bank of England pushes interest rates to 7%, it could have dire consequences for the housing market, causing average prices to plummet. Craig Fish, managing director at mortgage broker Lodestone, believes that a 7% interest rate would tank the mortgage market completely. Tom Pugh, an economist at consultancy RSM, predicts that house prices could fall by more than a fifth if the base rate reaches 7%. Riz Malik, director of mortgage broker R3 Mortgages, warns that further rate hikes could be the final blow for the housing market. The Bank of England is expected to increase the base rate above 6% by the end of the year, heightening fears for the UK economy and household budgets. 

The Independent (11/07/2023)