As there has been a hike up in interest rates, cost of living and house prices, new home buyers and and the younger generation will find moving onto the property ladder extremely difficult. This is because affordability is rapidly decreasing and even one in five current homeowners saying that their mortgages will soon become unaffordable. A key is the Bank of England increasing the base rate from 0.1 per cent to 0.25 per cent at the close of 2021, it is predicted to be 1 percent by the middle of March 2022. The house prices as calculated in January 2022, have increased by just under 10 percent than that of the year before, limiting buying options for many.
What should be done to combat these impacts and effects of rising rates?