I was right! I’d like not to be in this case but on at least two previous blog posts earlier this year did state that in my opinion interest rates would increase marginally before the calendar year.
Banks will rush to increase their rates to reflect the rise and of course it has created lots of headlines and the usual doom and gloom approach. However, what difference will this really make to property market? Nothing! The difference will be incredibly marginal and will not effect the demand for quality rental homes and therefore the need for property still stands and the clear and obvious returns and growth for the buy to let landlord still stands.
The increase is an attempt to slow down and steady inflation not to effect the property market.
The ongoing Brexit negotiations undoubtedly are having an effect on the economy and the overall uncertainty though listening to Mark Carney on Preston on Sunday yesterday was incredibly positive, focused and typically reassuring. He commented on “business investment has picked up and that the economy should be booming but it is just growing” and how this was down to the “nature of the deal with the European Union”.
Interest Rate Increase: Reason for negative headlines? Concern for the economy? NO!