Higher interest rates seem to be working to slow down house prices in the UK. July saw a massive slowdown which has brought the annual growth rate down to single figures. This has been the slowest growth rate since April 2006 after 5 interest rate increases in a year.
This leaves the Bank of England having to make tough decisions in the coming months. Economic growth is steady but consumer finances are really starting to feel the pressure of higher interest rates. Will they punch or will they pinch, we’ll have to wait and see but the 6% figure definitely seems to be looming!
