A typical two year fixed mortgage deal has an interest rate of more than 6% for the first time since December.
Mortgage lenders have been putting up rates and pulling deals at a rapid rate in recent weeks, driving up costs for homeowners seeking new deals.
Recent high inflation and strong pay growth figures mean interest rates are now expected to rise by more than expected, pushing up borrowing costs. Rishi Sunak has appeared to rule out any extra support for homeowners.
Borrowers face another painful interest rate hike next week after a Bank of England official said more action was likely to be needed to defeat inflation.
That will take interest rates from 4.5% to 4.75%.
Because of this, Santander has become the latest bank to pull its entire range of mortgage deals for new customers, as rising interest rates continue to wreak havoc on the housing market. Both Santander and HSBC were forced to suspend rates on new residential and buy-to-let offers after it was flooded with applications from borrowers desperate to refinance.
The final chapter in the sorry tale of Purplebricks has come to light after the company announced it is selling the firm's assets and business to Strike for £1, pending approval by its shareholders.
This week, the government introduced its Renters' Reform Bill to parliament, which lays out more details of its plans for the new legislation.
How Long Will it Take For the Bill To Be Passed and Become Law?
In short, no one knows as it depends on how long it takes to be passed through parliament. It is a large piece of legislation so could take some time to go through the full parliamentary process.
Why is the Renters' Reform Bill Being Introduced?
Though the majority of tenants enjoy living in safe rentals that provide them with a secure home, this bill aims to protect tenants who currently live in unfit homes.
It will also aim to standardise rental conditions , to ensure that tenants all have access to safe homes, that meet certain conditions.
How Could the Renters' Reform Bill Help Tenants?
Currently, Section 21 evictions result in tenants needing to find a new home, often at short notice, which can mean high moving costs and unnecessary upheaval.
The Decent Homes Standard will now be enforced in the private rental market, which means that homes must meet certain health and safety standards, with facilities kept in a good, useable condition.
The bill will also make it easier for tenants to challenge things like unjustified rent increases and obtain refunds for poor quality living accommodation.
These reforms are designed to ease the cost-of-living pressures families are facing and improve conditions for the entire rental sector.
How Could the Renters' Reform Bill Affect Landlords?
The majority of landlords are responsible and provide safe and secure accommodation for their tenants.
However, for those that do not, increased penalties will be put in place and councils will have more powers to challenge landlords who do not meet their obligations.
There will also be measures in place to protect landlords and the bill will make it easier for landlords to claim back their property under certain circumstances. For example, when a landlord finds themselves with a tenant who's engaged in anti-social behaviour.
A New Ombudsman and Property Website For the Rental Market
The Private Renters' Ombudsman will also be introduced as part of the new bill, which will aim to settle disputes between landlords and renters quickly and at a low cost.
A new website will also be accessible by landlords, tenants and local councils. This will help all parties understand their rights and responsibilities.
As expected, the Bank of England has raised interest rates by 0.25% to 4.5%. This will have further consequences to home-owners as lenders anticipated the rise by increasing their rates.