Interest rates fail to deflate housing market buoyancy

Recent rises in interest rates have not yet fully impacted on the mortgage market, it has been claimed.

According to the Council of Mortgage Lenders (CML), the significance of the five interest rate hikes effectuated by the Bank of England's monetary policy committee (MPC) has yet to be realised.

However, while the body expects the market to feel the complete effect of the aforementioned decisions by the autumn, it believes that demand will not be affected in a major way and that a record £360 billion of mortgage lending will be reached this year as projected.

The most recent figures released by the CML show gross mortgage lending totalled £34.4 billion in July, down one per cent on the £34.8 billion achieved in July but 13 per cent higher than last year's equivalent figure.

The Royal Institution of Chartered Surveyors is of a similar opinion, concluding that the "housing market still remains resilient" based on the CML results.


© Adfero Ltd