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March Interest Rate Statement - Rates held at 0.5%

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David Bexon, Managing Director of smartnewhomes.com, comments on the Monetary Policy Committee’s (MPC) decision to hold interest rates at 0.5%:

‘The Bank of England’s decision to keep interest rate levels at an historic low for the twelfth consecutive month is good news for home buyers and the house building industry.

‘However, in light of growing consumer confidence in the market and the expectation that interest rates will remain low for some time, we still need to see an increase in lending for new build properties. Santander’s decision to increase its maximum loan size specially for first time buyers of new homes has been met with a wall of silence from the other high street banks. New homes are competitively priced and the most energy efficient in the UK, lenders must surely recognise this and make moves to unlock lending for this group of buyers.’

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Date Published: 04 March 2010

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