The Bank of England has increased interest rates for the sixth time in a row, this time to 1.75%.

The Monetary Policy Committee's 0.5% rise is the biggest for 27 years and comes as the Bank battles the highest inflation levels seen in 40 years, alongside rising energy bills and political pressure from likely new Conservative leader Liz Truss, who would reportedly review the Bank's mandate over raising rates if she comes to power.

While interest rates remain historically low, there is general consensus that there are more rises to come. So what does that mean for commercial property, where interest rate levels are traditionally one of the most important levers affecting activity and sentiment.

The successive rises have already contributed to a slow down in transactional activity as participants take stock of the affect on pricing, and notably a thinning of prospective buyers as debt costs increase and reduce return assumptions.

Some sectors, such as retail, appear particularly exposed to the squeeze on consumer spending and are already trying to digest the likely hit to occupiers.

Read the full article at HotelNewsNow (part of CoStar)