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Effect of rising interest rates on property prices?

Suppose UK interest rates rise sharply, will that cause a crash in UK property prices?

Asked on Oct 9 2013, General in Cheltenham | Report content

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  • In a word yes. If rates rose sharply, you would see far less houses selling due to the lack of affordability in mortgages. But whether rates will rise sharply or housing price crash? Both are unlikely, it will be small rate rises and small price falls.

    Answered on Oct 10 2013, Report content
  • Yes. a return to a bank base rate of 5% would kill the BTL market as a lot of portfolios would be cashflow negative and unaffordable.

    Web reference:

    Answered on Oct 11 2013, Report content

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