The Bank of England’s Monetary Policy Committee meets next week to consider whether base rate should rise again - but there’s been a warning issued by a property industry chief.

Jonathan Rolande of the National Association of Property Buyers says some analysts fear house prices could fall as much as 30 per cent if interest rates - controlled by the base rate - do not fall soon.

And he says this month’s decision by the BoE represents a pivotal moment. 

“For those [buyers] with any kind of debt the rise and rise of rates, courtesy of the Bank of England, has chipped away at disposable income. We have all seen the shocking effect of inflation for ourselves whenever we go to the shops or switch on the heating. And these rate rises, combined with higher prices, are now really taking effect.

“House prices have begun to slip away from their eye watering peak, and there is a sense that the worst of inflation is now behind us. We can only hope those at The Bank of England feel the same way and spare homeowners from more rate rises. If they don’t we risk seeing prices fall even more in the future.”

The NAPB claims London has suffered the highest increase in mortgage bills  with average monthly repayments rising by £490 per month as a result of recent rate rises. 

The South East has had the second-biggest increase in mortgage costs but at the other end of the scale Scotland has experienced smaller average monthly mortgage cost rises of £169.

Via @LandlordToday