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MPC hold interest rates
The recent decision by The Bank of England to hold interest rates at 0.5%:is more good news for homebuyers and the house building industry. Interest rates have been held at 0.5 per cent, for a number of months now, with experts claiming it may stay at the same level into 2010. The monetary policy committee (MPC) also held its quantitative easing programme limit at £175 billion. Some financial analysts had called for the programme to be increased to £200 billion.
Many have already been encouraged to enter the market as confidence in house prices rising, as opposed to falling, has become more widespread. However, many of these sales have only been possible by continued assistance from developers in the form of increased incentives and help with securing affordable mortgage products.
David Bexon, Managing Director of smartnewhomes.com, commented
‘With an expectation that interest rates are to remain low for some months, we need to see more lending coming on stream from a bigger range of high street banks in acknowledgement of up beat consumer confidence.”
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