Mortgage customers and house-hunters will hope any mortgage rate increases are small and short-lived.
Analysts say the increase in swap rates could have been caused by a number of reasons, including potential announcements in the upcoming Budget, comments from Bank of England policymakers over the direction of rates, and international tensions.
However, in general the medium-term direction of interest rates is still expected to be down.
In the meantime, those hoping to be first-time buyers face a triple-whammy if mortgage rates start to rise again, house prices go up, and rents get more expensive.
Fears among some landlords about stricter tax rules in the Budget, as well as greater protection for renters, have led some to sell up, according to Rics. Fewer homes for rent could mean higher costs for tenants.
“Demand is consistently outstripping supply,” said the president of Rics, Tina Paillet.
“While the Renters’ Rights Bill aims to improve standards and offer better protections for tenants, we must ensure that these reforms do not discourage responsible landlords from remaining in the market.”
Source:
www.bbc.com
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