The Bank of England is under increased pressure to raise interest rates to counter soaring house prices. Prices are now a fifth higher than this time last year.
The bank will announce the rate for July today.

Figures from Nationwide building society show house prices have rocketed 3.3% since May to a 13-year high. As a result, Nationwide almost doubled its forecast for annual house price growth from 10% to 18%. It said high employment, low mortgage rates and confidence in continued house price growth were driving the rise.

Last week the Council of Mortgage Lenders called for a "modest rise [in rates] sooner rather than later".

And figures from data analyst Hometrack added further weight to the case for higher interest rates by showing the average home in England now takes just one week to sell and is often bought for more than its asking price.

But the Bank of England is expected to leave rates unchanged amid concerns about global stock markets.

Source

Housing Today