The Bank of England has just raised the base rate to 5%, the highest level in almost 15 years.
The reverberations for the whole of the UK property market will be severe, for homeowners, for landlords and for all businesses connected with property.
No doubt the Bank will justify it’s decision but it’s a blunt and vicious instrument it’s using to try and curb soaring inflation and the question has to be asked as to whether or not this will do far more harm than good.
If crippling the UK housing market is your aim then this latest base rate rise will almost certainly do the trick. As so much of the UK economy relies on a vibrant housing market the shock waves are likely to approach tsunami levels.