7 Feb

Interest rate cut welcomed

Interest rate cut welcomed

The cut in the Bank of England's base rate of interest by a quarter point to 5.25 per cent has been widely welcomed by experts in the housing market.

Simon Rubinsohn chief economist of the Institute of Chartered Surveyors (Rics) said: "The Rics welcomes today's move by the Bank of England although further interest rate cuts may be necessary to offset a continuing tightening in the cost of credit which is hitting household finances."

Meanwhile, Peter Bolton King, chief executive at the National Association of Estate Agents, said: "Our agents on the ground are reporting steady local markets in a large number of areas. While we may not be enjoying quite the heady price rises of recent years, the market is still holding its own for the time being.

"It's a shame that the Bank waited until now to reduce rates again – a drop in January following the December cut could have been particularly good news for consumer confidence. I am hopeful, though, that this latest decrease will prove the catalyst we've been waiting for to restore faith in the market."

Many leading mortgage lenders have responded immediately by reducing their own borrowing rates, a move that will be welcomed by homeowners and buyers alike.

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