The Bank of England has raised interest rates by 0.25% to 4.5% and they now forecast there will be no recession this year.
The economic growth has been upgraded but the Bank warned inflation will be higher this year than they had previously thought.
Unfortunately this will affect millions of households across the UK and for tenants who are already paying huge amounts could see their rent soar “in line” with their “landlord’s mortgage.”
Jonathan Rolande, spokesman for the National Association of Property Buyers, said, “The rise today is very disappointing. The Bank of England has very limited tools to combat the inflation that is making life so difficult, raising interest rates is one of them.
“Housing costs such as mortgages and rents have rocketed in the last two years – up 26% on average. The rise in rates may help to control these increases eventually but in the short term, it will cause more misery to millions of homeowners and tenants, who often see rents rise in line with the cost of their landlord’s mortgage.
This is the 12th increase in a row and is one that could potentially snuff out the mini-recovery that has begun this spring. We must hope there isn’t a 13th.”
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