“No doubt inflation will fall further when the July data is available, but again it will be way beyond where the BoE want it to be”

Jo Breeden, MD at Crystal Specialist Finance:

“The base rate rise was expected from 5% to 5.25% by commentators and the financial markets alike — the BoE had little choice given the current rate of inflation.

“No doubt inflation will fall further when the July data is available, but again it will be way beyond where the BoE want it to be, and so further rises are to be expected.

“In our half year broker survey, 40% thought it would peak above 6%.

“While swap rates have eased somewhat since June’s inflation data, as of yesterday, two years swaps were still above 5.5%, and this time last year they were just under 2.5%. So that’s no great comfort for home buyers or sellers looking for a new fixed-term deal.

“It’s hard to call when the BoE will stop the base rate rise cycle, [but] whatever the outcome the property market will continue to be difficult, [yet] dampening property prices creates opportunities for professional investors.

“If brokers are struggling at the moment in the residential space, they should look to diversify and support property professionals and businesses alike.”