Displaying items by tag: bank rates

The Bank of England's interest rate hikes, aimed at reducing inflation, have led to a slowdown in the UK housing market. Recent data reveals a significant drop in house prices, the largest since October 2011. This decline, most pronounced in London, reflects the impact of pandemic-driven price surges. Despite this decrease, the housing market faces long-term challenges. Interest rates have risen, functioning slowly like drip filter coffee, and have a delayed effect on the market. This delay is due to the time taken for banks to adjust mortgage rates and for these changes to be reflected in official statistics. The latest data from the Office for National Statistics (ONS) show a 1.2% drop in house prices over a year, marking the fastest decline in over a decade. Financial markets anticipate rate cuts next year, which could revive the market. However, the overall cost of living remains high, with increased expenses from food to household bills. Over a million people will face higher mortgage costs next year.