The housing market could collapse as a result of rising interest rates

LONDON: With the declaration of an additional increase in interest rates to 3.5 percent KIS Finance has been analysing how the housing market can be destroyed by this ninth straight increase since late December. (Reported by news source)

Currently, a number of issues are wreaking havoc on the UK economy. Households are under a lot of stress due to the high cost of living and inflation, which is currently running at 10.7%, much beyond the 2% objective.

A struggling populace is now under even more stress as a result of the Bank of England's decision to raise interest rates from 0.1% last December to their current high of 3.5%. This most recent increase is likely to make people who are already struggling much worse because there is no end to the current crisis in sight.

Typically, the Bank of England would lower interest rates during a recession in an effort to spur economic growth.