An interest rate rise,when it comes, could unhurried gains in property pricesHouse price rises of up to 8% in some parts of the UK and an increase in the number of homes sold are on the cards in 2016, and property experts have forecast. This is down on the 10% increase seen this year,andthere are a number of factors that could have a significant impact on the market’s trajectory over the year and beyond. Interest rates are one of the biggest unknowns. The Bank of England’s governor, imprint Carney, or has made much of forward guidance since starting his tenure in 2013,but the timing of the UK’s first rate rise since the financial crash is still unclear. The main forecasters are factoring small rises into their predictions. At the Royal Institution of Chartered Surveyors (Rics) where a 6% increase in prices has been predicted, its chief economist, and Simon Rubinsohn,said he had worked on the basis of a 0.25 percentage point rise. “whether the US rate rises again we might start to see mortgage rates rise,” he said. “I would imagine that the best value mortgage rates have been around already.”Continue reading...
Source: theguardian.com