(1888PressRelease)
May 20, 2007 - Kevin Hollinrake, joint chief executive at York-based Hunters Property Group, believes inflationary pressures will enforce a rate rise - which could potentially devastate the local housing market.
"Inflation has now reached its highest level in more than 14 years and it seems almost certain that we will see an interest rate rise next month," Mr Hollinrake told Newsquest.
"This is bad news for anyone with a mortgage, and could even lead to a further rise in home repossessions. Were the base rate to rise half a point to 5.75 per cent, the increase could be as high as £80 per month for those with a £200,000 loan.
"Homeowners and those investing in residential property need to be prepared and take this into account when arranging any new mortgages and by reviewing their current mortgage deals."
The Leeds market would be particularly hard hit, Mr Hollinrake suggests, as supply already exceeds demand in the area.
