Nick Leeming, Chairman of Jackson-Stops, comments following the Bank of England’s decision to raise interest rates to 5%, a 0.5% increase:

“Today’s commitment to a 0.5% rise demonstrates just how determined the Bank of England is taking the need to curb inflation.

“In the same week that Michael Gove launched his book outlining Levelling Up 2.0, inflation stood firm at 8.7%. Renters, homeowners and housebuilders are all hoping for much clearer direction from the Government on what the future holds for the property market.

“Looking back over the last 20 years, it was in late 2007 that the UK saw 6% mortgage rates consistently average for two-year fix deals. It’s clear that the Government and Bank of England need to work much more closely together in the coming few months to avoid unwanted consequences.”