Expert comment from John Elliott, Managing Director of Millwood Designer Homes:

“The rate of 0.25 per cent interest unfortunately couldn’t last forever, as it was an unsustainable level in all regards.

"Following this announcement, I believe the increase to 0.5 per cent is not the end of the world, as on average a significant amount of households will only face rises of between £11 and £12 a month, according to UK Finance

“I think this really came down to being realistic, in terms of the wider economy. Many financial institutions have already discounted the rising interest rates and as stated, for individuals, it should not make much of a difference, with many mortgages and loans not expected to see immediate impact.

"Moreover the Bank of England expect future increases to be confined to 0.25 per cent and only reach the dizzy height of one per cent in three years time.

In terms of the housing industry, I do not expect this to have too much of a wide-reaching effect and with the Chancellor’s Autumn Statement coming up, I believe we should remain positive.”

www.millwooddesignerhomes.co.uk