Matthew Beardon has spent the past six months searching for a property, but after Thursday’s base rate rise he has given up hope of buying a home he can call his own.

Mr Beardon, 27, who works as a Learning Technologist at the University of Salford, said: “Financially I have to go back to the drawing board. The rate rises this week and in January may only be a minor increase, but it will make a big difference over the course of a year or two.”

Mr Beardon has saved £5,000 towards a deposit and was looking for a property in Manchester worth between £110,000 and £120,000. “The quality of the places I have been looking at has fallen dramatically over the last few months as prices have risen. This interest-rate rise is the nail in the coffin.”

He now hopes to find a friend willing to buy with him.

“I was looking for a one or two-bedroom house or flat,” he said, “but perhaps two of us could afford a three-bed property.”

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