Interest rates rose from 0.25% to a new base rate of 0.50% today (Thursday 2 November).
This was the first rise in more than 10 years and reverses the quarter point cut of 2016 made following the EU referendum.
The move has been seen as a change in the direction of travel and the first step on a long road towards ‘normal’ interest rate levels.
Indeed, Bank of England Governor, Mark Carney, said inflation was unlikely to return to 2% without raising rates, because the economy was growing at levels ‘above its speed limit’.
How will this affect the UK dental practice sales market?
Ray Goodman, managing director of Goodman Grant Solicitors suspects that the market will retain its recent buoyancy.
‘Money is still very cheap and the costs of borrowing are at an all-time historic low.
‘I think that there is a long way to go before the market for dental practices is hit by money becoming prohibitively expensive.’
Almost four million households are likely to face higher mortgage interest payments after the rise, but it should give savers a modest lift in their returns.
Ray continued: ‘The market is still bullish aided by bank lending and new institutional money entering the market.
‘I believe that rates will have to head north for some time yet before any dampening of demand occurs.’