The interest rate rise penalises homebuyers – now we must help builders build

John Anderson CEO of Allison Group 3

The Bank of England’s decision will create challenges, but the demand for new homes is there, writes John Anderson

The Bank of England’s further 0.25% interest rate rise hardly came as a surprise given the widespread commentary beforehand. However, with inflation seemingly falling, I am particularly frustrated for all those people on variable rates, those looking to buy a home, looking to remortgage, or possibly putting their life plans on pause.

With inflation falling, the medium-term market had started to show more confidence. Fixed term mortgages were showing signs of falling.

Speaking to our customers and homeowners, we know that people still want their own homes. Housebuilding is just one part of the jigsaw, but the home allows people to take the next steps in their lives, with their families and friends, make that next career move, or build communities. This demand is encouraging, yet we hear too often of people unnecessarily putting their lives on pause while the Bank of England rates keep changing.

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