The housing market was hit with an unknown factor this month. For the first time in a decade the Bank of England Monetary Policy Committee (MPC) increased the standard base interest rate. This means that borrowing is more expensive, including borrowing for home buyers seeking a mortgage and homeowners choosing a remortgage. The fact that this is the first increase in so long there are many experts closely watching for how it will impact the housing market.

There is more to consider than just a higher cost in borrowing. There is also Brexit, inflation, the global and domestic economies in general, and the usual slowdown in house buying during colder weather. There is also a lack of supply coming into the market as fewer homeowners are upgrading or downgrading from their present property.

In the lead up to the November interest rate increase, the housing market was already experiencing a stall or slow down. This includes purchases by landlords for buy to let.

In poll data released by the Royal Institution of Chartered Surveyors (RICS), 20% more surveyors reported a decline in buyer interest in October. There were also 20% more reporting a decline in transactions across the UK. London had almost 75% of surveyors reporting a drop in house asking prices in the last month, which was the most since the start of the financial crisis in 2009.

Simon Rubinsohn, RICS chief economist, remarked, “The combination of the increased cost of moving, a lack of fresh stock coming to the market, uncertainty over the political climate and now an interest rate hike appears to be taking its toll on activity in the housing market.”

Those that choose to take action soon may find there are still very attractive interest rates to be found on both mortgages and remortgages. Some lenders are still in a competitive mode and have yet to pull their cheapest deals from availability. Others are busy coming up with enticing packages with low interest rates still to be found for home buyers and homeowners alike.

Shopping online is a quick way to see what lenders have available, and brokers can be helpful as they have deals not offered to the public.

Overall, the housing market might be slowing, but there are still those that believe a simple Bank increase of 0.25% is not enough to deter their dreams of home ownership at a time when interest rates are still at low and affordable levels.