2
Dec
Rate cuts 'will boost housing market'
The housing market will bounce back if the Bank of England's
monetary policy committee (MPC) keeps cutting rates, an expert has
stated.
Managing director of Smartnewhomes.com Dave Bexon said the website
of his company, which sells new-build property, saw a 14 per cent
rise in enquiries the day after the 1.5 per cent cut was instigated
by the MPC last month.
He commented: "While it is by no means a sales surge, it shows the
extent of people still present on the periphery of the housing
market, assessing potential opportunities to make their
move."
As a result, more rate cuts - provided the government presses
lenders to pass them on to their mortgages - will lead to greater
market activity, he added.
Mr Bexon's wish for a further reduction this month is likely to be
fulfilled, according to the Adfero poll of experts.
All 11 surveyed tipped a slashing of the rate by at least 0.5 per
cent.
