Homeowners will bear the brunt of the latest increase in interest rates, commentators have warned.
And there were fears the Bank of England Monetary Policy Committee's decision yesterday to raise rates to five per cent could badly hurt the buy-to-let market, underpinning Birmingham's city centre living explosion.
Harvey Williams, Midland spokesman for the Royal Institution of Chartered Surveyors, said: "This will put pressure on homeowners in the region, particularly those with variable rate mortgages.
"While the quarter per cent increase could be justified and will help to cool the housing market in some areas like London and the South-east, house price increases have been more modest in the West Midlands."
And David Bexon, managing director of SmartNewHomes.com, cautioned: "It will see even more first time buyers priced out of the market and young families struggling to meet their mortgage re-payments."