Linden comments on interest rate rise

Philip Davies, chief executive of Linden Homes, says: “Today’s interest rate rise was widely expected and the majority of homeowners had already priced it in, so I do not expect it to have a significant impact on the housing market.

“A further rise in December or January, however, would have a detrimental effect on consumer confidence, so I await the minutes of today’s MPC meeting with anticipation to see how the committee members voted.

“Investor presence is currently strong and first time buyers are clinging on to the market through developer deals, buying together and with financial help from their families, but they will feel the pinch even harder after today’s rise. The continuation of the upward trend next month or in the new year would price the vast majority of first time buyers out of the market altogether, resulting in stagnation and preventing existing homeowners from moving up the ladder.”