THE Bank of England's decision to raise interest rates to 0.5 per cent will not have a major impact on the housing market, says a property developer.
Prospect Homes, which has sites in Lancashire and Yorkshire, says it believes a "resilient" market is set to continue, with potential buyers "unlikely to be deterred".
Neil Waddington, managing director of the Liverpool-based company, said: "With the demand for new housing continuing to outstrip supply, we don’t believe the rise in interest rates will have a huge impact on the market. It is our job as a responsible housebuilder to continue meeting our build targets and provide high-quality homes for our buyers."
Interest rates have been raised for the first time since July 2007. Mark Carney, governor of the Bank of England, said he expected banks to pass on this rise in interest rates to provide a boost to those who have savings accounts. He also noted that almost two million UK households had not experienced a rise in interest rates since taking out a mortgage.
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