“The impact cannot be understated: the cost of housing will be closer to, or even above, net incomes for many householders"

Anna Clare Harper, CEO at GreenResi:

‘‘This rise in interest rates means that two million households with mortgages on variable rates, or with their fixed rates coming to an end this year, face even higher monthly mortgage payments. 

“The impact cannot be understated: the cost of housing will be closer to, or even above, net incomes for many householders. 

“We can expect to see many of these property owners selling up for lower prices — investors we work with are currently buying at 20-30% below peak 2022 house prices, though it is worth noting that peak values reflected a mini-bubble from reduced stamp duty combined with very low interest rates through Covid. 

“Despite price reductions, housing is no more affordable today since higher interest rates also affect potential property purchasers.

“This means demand for rental properties is likely to continue to grow, making rents ever higher.”