It's now three years since the Bank of England started hiking interest rates. Over the period, average mortgage rates have risen from 2 to 3.7 per cent. But the impact on house prices has not been straightforward.
The average price has increased by almost 7 per cent, rising from £274,000 to £292,000 over the past three years. But growth has been uneven – prices rose in 2021 as the lockdowns triggered a race for living space, dipping later on as a difficult economic backdrop weighed on demand.