OPINION - The Leader podcast: Mortgage and rent woe after Bank interest hike

The Bank of England hiked interest rates again on Thursday (John Walton/PA) (PA Wire)
The Bank of England hiked interest rates again on Thursday (John Walton/PA) (PA Wire)

As the heavens opened over London, there’s a financial storm brewing.

The Bank of England has decreed the steepest interest rate hike since 1989, with a jump of 0.75 percentage points to three per cent, as it steps up the fight against soaring inflation.

This leaves the Bank’s base rate at its highest level since 2008, heaping more pain on mortgage holders.

But what’s the impact going to be on London’s property market, for homeowners with mortgages and renters?

It comes as estate agents Savills warns the capital’s homeowners that property prices in London are forecast to fall faster than anywhere else in the UK as biting mortgage interest rates hit house and flat values, with concerns of the knock-on effect on Londoners who are renting.

The government’s not revealing any detail on its plans ahead of the autumn Budget statement.

To analyse the impact of Thursday’s unwelcome financial news, The Leader podcast is joined by Laurie Macfarlane, a fellow at UCL’s Institute for Innovation and Public Purpose.

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