David Bexon, Managing Director of SmartNewHomes.com, comments on the Bank of England’s decision to drop interest rates by 1.5%:
“While news of this heavy rate cut is welcome in the current climate, the latest drop in rates will have very little bearing on the market, unless we see these cuts passed onto borrowers with immediate effect.
“The current rate at which house prices are falling should be the main concern for everyone, lenders included, and everyone will continue to suffer if action is not taken and home buying and home building continue to stagnate. It is essential that mortgage finance is made available in order to kick-start the housing market.”
Bexon adds:
“With inflation no longer the primary concern for the MPC, the committee will continue to focus its efforts on supporting the housing market and wider economy. I am not overly surprised by the 1.5% drop today - rates have to fall considerably in order to encourage a significant number of home buyers back to the market.”
See Also: Press Releases (371)
Date Published: 06 November 2008
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