5 Aug

House prices to grow 'due to low interest rates'

House prices to grow 'due to low interest rates'

The value of houses for sale in the UK could result in healthy growth as the result of low interest rates, according to one expert.

Lucian Cook, director at Savills, said that a prolonged period of low interest rates will "put a floor on house prices".

He stated that if the rates continue to stay that low, "it will give a springboard for house price growth when other conditions are right".

Mr Cook said that this will translate into some "pretty decent house price growth"

His comments came in response to the Bank of England's Monetary Policy Committee vote, taken today (August 5th), to maintain the base rate on commercial bank reserves at 0.5 per cent.

The last change in the base rate occurred in March 2009, when it was reduced by 0.5 percentage points.

Mr Cook added that an economic recovery together with the low base rate will enable homeowners to see a substantial increase on their property values.

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