The Bank of England’s Monetary Policy Committee (MPC) will meet today to once again discuss the possibility and need of increasing the standard base interest rate that now sits at 0.5%.  While there are no economists that are expecting a rate increase today, there is the possibility that the rate will be changed sooner rather than later as the economy surges toward recovery.  Surveys have resulted in experts bringing forward the date in which the rate is expected to increase and now the first quarter of 2015 is the time period that economists are expecting at least a boost of 0.25% more to a new total of 0.75%.

The housing market has been rebounding nicely as demand has increased with the return of first time buyers.  Starter homes have been purchased and homeowners that have found buyers are upgrading to larger properties.  This has brought thawing to the long frozen property ladder.

Some economists and financial experts have been putting out words of warning that the housing market is actually recovering too quickly and a housing market bust is on the horizon.  Prices could rise so quickly that property will rise out of reach of first time buyers that have only now returned to the market.

The rising house prices have boosted property values allowing homeowners to seek out more attractive remortgages.  Equity growth has been so consistent and evident that some homeowners have become obsessed with checking online property listing sites to determine the most current value estimate of their home.

The MPC announcement from their May meeting may not be a surprise as the interest rate is expected to stick but there will be much interest in the meeting’s minutes which will be released later in the month.  Through the minutes the tone of the committee and their perception of whether the economy can handle more expensive borrowing will be of interest to many.