Brokers say rate rises have had no impact: UTB

Over two thirds of brokers, 68 per cent, believe the two Bank of England base rate increases since November 2017 have had no impact on their businesses, according to United Trust Bank.

The current base rate stands at 0.75 per cent, increased from 0.50 per cent in August 2018.

While over two thirds of brokers believe the increases have not affected their businesses, the survey outlines how 27 per cent believe that the rising base rate has had a negative effect on the UK’s residential property market overall.

UTB adds that nearly half of the 100 brokers it asked expect the base rate to be at 1 per cent by the end of 2019.

UTB Group Managing Director Harley Kagan says: “It is encouraging to see that for the majority of brokers the two base rate increases have had little to no impact on their businesses over the last 12 months.

“The base rate has been less than 1 per cent for the best part of 10 years, which was originally a measure to stave off the worst effects of the financial crisis.

“A return to the interest rates seen before the credit crunch seems unlikely. Developers and housebuilders need to be mindful of future demand with Brexit uncertainty, causing some to take their foot off the gas with new starts.”

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