Rics calls for interest rate increase

08-Nov-2006

Potentially impacting up first time buyers, the Royal Institution for Chartered Surveyors (Rics) is calling for the Bank of England to raise interest rates.

Despite any interest rate increases negatively impacting upon first time buyers, Rics now believes that there are now strong arguments for a quarter-point interest rate increase to five per cent.

"The recovery of the economy this year has exceeded all expectations, the stock market is at it's highest for over five year and there has yet to be any noticeable negative impact from the August interest rate rise," said Milan Khatri, chief economist at Rics.

"A pre-emptive rise … will help to contain inflationary pressures," he added.

Specifically, Rics believes that consumer confidence and the manufacturing sector are robust enough to absorb any increase in interest rates, in addition to the housing market continuing to perform well.

Rics is a UK-based organisation, representing the interests of professionals in a number of sectors, including land, construction and property.

First time buyers concerned about how an increase in interest rates might effect how much they would have to pay each month should consult a good broker.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it would cost you, contact a good mortgage broker.

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