had a real and noticeable effect on house prices.

In 1978 to 1979 rates moved from 7 to 17% with house prices dropping 15% a year later.

In 1989 increases from 8% to 15% resulted in a price decline which lasted for the next

6 years. The 2004 to 2007 rate rises also had a marked effect before the eventual financial

crash. The interesting point to note is that average

house price declines tend to lag a period of rate increase by about a year or so in

each case. But the caveat for 2016 will be how the effect of the rate rises will be felt,

given the sheer scale of quantitative easing that's taken place since 2009.