Steve Lees, Marketing Director of smartnewhomes.com, comments on today’s decision to keep interest rates at 0.5%:
“Maintaining interest rates at 0.5% remains the only sensible option in the current economic climate so we very much welcome today’s announcement from the Monetary Policy Committee.
“In light of the changes announced in the recent emergency budget, the stability of interest rates is a crucial factor in ensuring a sustained economic recovery. A low base rate is vital for breeding confidence throughout the property market and for furthering the government’s stated aim of encouraging home ownership.
“However, while today’s announcement is good news, there are other significant issues affecting the market that still need to be addressed if we are to garner maximum benefit from the low interest rate policy. The mortgage funding gap means perfectly credit-worthy borrowers continue to be denied affordable home loans, with first-time buyers, who are the real lifeblood of the market, among the worst affected. We are still waiting to see meaningful action from the housing minister on this critical point.”
See Also: Press Releases (371), Property News (6701), MPC (8), Monetary Policy Committee (11), Interest Rate Statement (8), Interest Rates (13)
Date Published: 08 July 2010
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