The forthcoming Budget will need to provide people with some "fiscal incentives" to get the property market moving again, it is claimed.
Richard Bowser, editor of Property Investor News, says monetary policy is effectively at an end, with base rate cuts close to being exhausted.
"Clearly the housing market is absolutely critical; they are throwing the baby and the bath water at this to try and get things moving between now and next May or June or whenever," the expert continues.
Mr Bowser claims that quantitative easing is a "stab in the dark", with its effects so far unproven.
It is therefore predicted that, in a year or two, fiscal incentives will be introduced to fuel the property market.
On March 5th 2009, the Bank of England cut the base rate by half a percentage point to 0.5 per cent. This is the lowest rate since the formation of the Bank of England in 1694.
See Also: Property News (6705)
Date Published: 20 March 2009
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