First-time buyers could come out as 'winners' after interest rate rises
manchestereveningnews.co.ukSoaring interest rates could end up benefiting first-time buyers, a new report has said. The Bank of England's recent decision to raise interest rates to a 15-year high of 5 percent could create some 'winners' amongst the younger generation despite the current mortgage crisis, according to a think tank.
The Resolution Foundation argued that a 'new normal' of higher rates could end a 40-year wealth boom that has been a key driver of 'intergenerational inequality', which could be good news for first-time buyers and early pension savers.
In the past, rising house prices and pension values have largely benefited older generations, while many younger people have been locked out of home ownership altogether.
But this could now be set to change in the near future. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. The Bank of England base rate currently stands at 5 percent and further rate rises are expected as the Bank tries to lower high inflation.
Read more on manchestereveningnews.co.uk