The Bank of England has today increased its base rate by 0.25 percentage points, from 3.75% to 4%, as policymakers seek to contain rising inflation, driven largely by higher global oil and energy prices.
All nine members of the Monetary Policy Committee (MPC) supported an increase, with eight voting for a rise to 4% and one favouring a larger increase to 4.25%.
Bank of England Governor Andrew Bailey indicated that today's decision should not necessarily be seen as the beginning of a prolonged period of interest rate increases, although he warned that further rises could be necessary unless there is meaningful progress towards resolving the conflict in the Middle East.
Malcolm Prescott, Managing Director of award-winning estate agents Webbers, believes that while the announcement may be disappointing for some homebuyers, there is no reason for buyers and sellers to abandon their moving plans.
"Today's decision to increase interest rates to 4% will undoubtedly be disappointing for those buyers who had been hoping for some relief from borrowing costs. However, with inflation continuing to prove stubborn, the Bank of England is clearly determined to bring price pressures back under control.
Importantly, this modest increase will not have come as a great surprise to many buyers and sellers, who have become increasingly accustomed to changing interest rates and the wider economic uncertainty.
From our experience across Webbers, there remains a genuine desire amongst people to move home, whether that is for family reasons, a change in lifestyle, downsizing or simply finding a property that better suits their needs. My message to anyone considering a move is simple: don't immediately put your plans on hold. Instead, take good advice, be financially prepared and make informed decisions."
Malcolm continued: "Seeking trusted, professional advice is particularly important in the current climate. Understanding what you can comfortably afford, securing mortgage advice at an early stage and allowing some flexibility in your household budget will help buyers proceed with greater confidence.
"It is also worth remembering that an increase in Bank Rate does not automatically mean an equivalent increase in fixed mortgage rates. Mortgage pricing is influenced by a number of factors, including lenders' expectations of future interest rates, and there is still competition amongst lenders for good-quality mortgage business.
"For sellers, realistic pricing remains absolutely crucial. Buyers are understandably taking a considered approach to their finances, but well-presented, competitively priced properties in desirable locations continue to attract interest.
"The property market is remarkably resilient. People will always need to move, and whilst the economic landscape may change, the fundamental reasons for buying and selling homes remain."
Malcolm concluded: "Here at Webbers, we are fortunate to operate in one of the most desirable parts of the country, and the lifestyle our region offers continues to be a powerful attraction.
"At Webbers, we believe the key to a successful move in today's market is a combination of realistic expectations, excellent marketing and sound professional advice.
"Interest rates may fluctuate, but good opportunities will always exist for buyers and sellers who approach the market with confidence and proper preparation.
"Our advice is to concentrate on your own circumstances and long-term plans, recognising that the best time to move is when it is right for you."