Will higher interest rates cause problems for Winchester?
Yesterday's announcement from the Bank of England that the bank's interest rate would rise once again, this time to 5.75%, has already caused much discussion in the nation's newspapers.
Some warn that the UK's high level of debt will lead to doom and gloom.
Many analysts are keeping a close eye on the UK housing market to see if there are any great movements in house prices as a result. It's felt that, sooner or later, the higher costs of borrowing are bound to have an effect.
Observing the situation on the ground in Winchester is interesting, with recent figures from Winchester estate agents having suggested that the market locally remains relatively strong. They are, of course, almost bound to say this.
Looking around at their websites though, it's clear that properties in this area are still moving pretty quickly. We'll have to wait for the next set of Land Registry Data to see whether buyers are offering anything close to the listed asking prices.
It will be interesting to see whether the interest rate rises start to effect the numbers of people dining out and buying luxury goods. They might be the first signs of people easing their spending, possibly leading to a slowing of the housing market.
Filed: 5 July 2007
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