Everest industry news
Buyers 'may come back' after interest rate cut
17 November 2008
A leading property website has claimed that the Bank of England's recent decision to lower interest rates could bring some buyers back to the floundering property market.The central bank's monetary policy committee (MPC) voted in favour of slashing the base rate from 4.5 per cent to three per cent when it convened on November 6th.
Now Michael O'Flynn, content editor of Findaproperty.com, has explained that while a "feeding frenzy" is unlikely as banks are still nervous about lending, some interest may return.
He said: "Lower rates are definitely a positive move and, combined with lower prices and the recent stamp duty changes, they will encourage more buyers back to the market."
Mr O'Flynn's comments will provide a boost to homeowners who have been making improvements - such as a new kitchen or building a conservatory - to add value to their homes to prepare for the upturn in the market.
The Bank's 1.5 per cent rate cut - which was primarily aimed at fighting the impending recession in the UK - was the highest since way back in 1981.
