Rates and inflation could dent property plans

A poll for Market Financial Solutions (MFS) shows that homeowners and renters fear rising rates and high inflation will hurt their homeownership ambitions. The poll of more than 2,000 people saw 28% of renters say rising interest rates were damaging their chances of getting onto the ladder, while 19% of homeowners said a higher base rate would damage their chances of affording their mortgage payments. While 18% intend to buy a property in 2022, 66% are worried that rising inflation will ruin their chances of doing so. It was also found that among existing homeowners, 14% plan to sell up and move home this year, while 6% hope to purchase an additional investment property. Reflecting on the findings, Paresh Raja, chief executive of MFS, said: “The dual threat of rising inflation and rising interest rates will, naturally, have serious ramifications on those looking to get onto or move up the property ladder. As the cost of borrowing increases, homebuyers will need to consider the budgets carefully and assess their options."

FT Adviser