David Bexon, Managing Director of SmartNewHomes.com, comments on this month’s decision from the Bank of England’s Monetary Policy Committee (MPC) to hold interest rates at 5.0%:
“With construction figures reported to have plummeted in July and housebuilders being forced to stall sites and cut jobs simply to survive in the current market, the Bank of England’s decision to hold interest rates, yet again, seems a ludicrous one.
“Developers are working hard to break down the barrier preventing many potential buyers from entering the market, providing deposits and removing the additional burden of stamp duty across a number of developments. However, the Government needs to be far bolder in its approach to tackle the long-term challenges facing the UK housing industry, and introduce genuinely decisive proposals if it is to bolster what is currently a flagging market.
“The recent speculation surrounding the Government’s temporary scrapping of stamp duty offers a glimmer of hope for potential homebuyers, but this, combined with a drop in interest rates and the freeing up of mortgage finance would have had a much stronger impact on today’s market.”
See Also: Press Releases (413)
Date Published: 07 August 2008
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