The last couple of months have been quite turbulent for most people with UK inflation soaring to a 30-year high of 5.4% due to rising energy prices, on-going supply disruptions and demands for goods and services remaining strong.
Unfortunately there are more increases expected this year. The Bank of England has increased their interest rates again for the second consecutive month. It is expected that the rates will rise again from 0.25% to 0.5% and if this rise goes ahead, this is the first time the Bank of England has increased interest rates in back to back months since June 2004.
This increase is being implemented in an attempt to tackle strong inflationary pressures building up in the economy.
As the year continues it is anticipated that the interest rates will continue to rise with rates expected to hit 1% by the summer and 1.25% by the end of 2022.
The increase of 0.25% isn’t expected to have a major impact on current buying behaviour as mortgage lenders would have already begun incorporating the base rate change into future calculations. This is good news for both buyers and sellers.
Coming into 2022 the market has been extremely active with the number of buyers enquiring increasing by 15% compared to the same time last year according to Rightmove.