Increases in the cost of utilities have caused homeowners to experience a higher rate of real inflation, according to Katie Tucker, technical manager at broker John Charcol. As a result of the recent increases in the cost of utilities and groceries, Tucker feels it is unlikely that the Bank of England will use Base Rate cuts as a way to give consumers relief. She also pointed out that any Base Rate reductions won’t be good news for every mortgage borrower in the country, as nearly 45% of homeowners have a fixed-rate mortgage, and so will be potentially losing out on savings. Tucker said: “Thankfully for homeowners on their lender’s standard variable rate (SVR) or SVR discounts, nine of the top 10 lenders passed on the full 0.25% cut to their standard variable rates (SVRs) immediately after the last Base Rate cut was announced. “Of further concern to first-time buyers, who have already been pushed out of the market by lenders restricting their criteria and withdrawing high loan-to-value products, will be the stimulation of the buy-to-let market as a result of an increased rental demand from those unable to buy. As rental yields improve, demand will decrease the amount of stock available to first-time buyers and deposits will be harder to save for as rental costs stay high.”