Rate cut needed now says National Homebuyers
The National Association of Estate Agents (NAEA) has warned that the Bank of England needs to cut the base rate of interest in March or the housing market will suffer, potentially leading to financial difficulties for many.
[UKPRwire, Wed Mar 19 2008] According to the organisation, the housing market is in desperate need of a boost and a cut to the base rate of interest would do just that.
However, it seems unlikely that the Bank's Monetary Policy Committee (MPC) will announce a reduction when it meets tomorrow (March 6th), potentially leading to financial difficulties for many.
"There is an ongoing lack of confidence in the housing market and the Bank of England needs to act fast to stop it stalling," said NAEA chief executive Peter Bolton King.
"We are seeing people squeezed as a result of the credit crunch, as the banks expect bigger deposits and better credit ratings. In addition, nervous banks are keeping their interest rates well above the base rate.
"The situation is by no means dire but the result could be very different if the Bank of England does not act now," he added.
Quick house sale expert Julian King says, "A rate cut is unlikely, but even that will do little to resolve the falling house price situation.
"There will be a continued lack of confidence in the market for sometime to come. Additionally, the lenders' criteria will remain sufficiently strict and limit the number of newcomers to the market.
"Fewer available buyers means properties will be selling for below their unrealistic asking price".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer to purchase any property in the UK. The company is also a leading in the Sell and Rent Back industry, where the homeowner can sell their property for cash and rent it back for an agreed period of time.