Adam Oldfield, chief revenue officer at Phoebus, says:

“Although it’s not what anyone wanted to hear, today’s increase in base rate is as predicted.  The trouble is that the fight to bring down inflation using interest rates has so far not proved to be particularly effective or speedy.  We are all dealing with rising prices at every turn, and that is unlikely to change in the foreseeable future.

The knock-on effect for the housing market is that with each rate rise affordability becomes more of an issue for many borrowers, especially those on SVRs.  Whether lenders will pass on this increase immediately is the question.  Or was this increase already priced in?  The market has been particularly buoyant recently so it will be interesting to see if another rate rise make potential buyers pause.”