

It showed an estimated 700,000 households missed a housing payment in the last month – with 5 per cent of renters and 3 per cent of mortgage borrowers doing so. Tomorrow, the Bank is expected to go for another increase – to 4.5 per cent – causing further pain.Įvidence from consumer group Which? yesterday gave a further illustration of the squeeze. At the same time, borrowers have faced a rapid rise in interest rates from 0.1 per cent in December 2021 to 4.25 per cent today as the Bank of England battles to bring down inflation. Households have been hit in recent months by a prolonged period of inflation at more than 10 per cent. Combined with the impact of higher interest rates gradually feeding through to those re-mortgaging their current fixed-rate deals, we should expect some further downward pressure on house prices over the course of this year.’ However, she added: ‘Cost of living concerns remain real for many households. House prices in April fell by 0.3 per cent – or around £1,000 – compared with March following three months of growth, data showed
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