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Interest rates are making UK homes less affordable, even as wage rises increase faster than house prices

By Alper Kara, Head of Department of Economics, Finance & Accounting, Brunel University of London

The Bank of England’s decision to put interest rates up for the first time in over three years could be bad news for prospective homebuyers. Higher borrowing costs risk putting home ownership even further out of reach for many people.

But the numbers aren’t all bad.

Official figures show that annual earnings between 2021 and 2025…

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