Base rate should have been cut says National Homebuyers
Many Britons will face financial difficulties unless the Bank of England cuts the base rate of interest soon.
[UKPRwire, Thu Mar 20 2008] That is according to Savills Private Finance, which said that it was not surprised by the Bank's refusal to cut rates in March.
However, the firm believes that a reduction is needed sooner rather than later if financial difficulties are to be avoided for many.
"The housing market does need further rate reductions just to boost it really and increase confidence," Savills' director Melanie Bien told Channel Four's News at Noon.
"Lenders are continuing to raise their mortgage rates and that will carry on going on; if there had been a reduction there would be more of a case for them to bring those back down again.
"[Sellers are] chasing margin rather than market share, and they're slowly edging the costing up on that which is affecting first-time buyers and people moving up the housing ladder," she added.
Fast property sale experty Julian King says, "It is bad news for homeowners, many of whom may need to consider a fast property sale if buyers continue to find it difficult to get onto the property ladder.
"Fewer buyers means property prices will continue to fall. As the criteria set for borrowers continues to be strict, the homeowner can see a continued reduction in the value of their property until the market picks up. And that is not immediately on the cards".
Mr King is a director of National Homebuyers, the UK's leading quick house sale company which guarantees to make an offer on any property in the UK, regardless of its condition or location. The company is also the UK's leaders in Sell and Rent Back equity release solutions for homeowners who need to release cash in their home without moving