22 Dec

Rate cuts already making impact, says housing firm

Rate cuts already making impact, says housing firm

A housing firm has rejected the notion that 2009 will be a bad year for transactions.

Miller Homes said today that there was a rise in buyer enquiries in its southern region in the wake of November's 1.5 per cent interest rate cut.

The firm also noted that various different housing firms, property websites and the Land Registry have recorded similar trends.

National sales and marketing director for the firm Sue Warwick suggested this offered hope for 2009, adding that if the government makes good "the promise to put pressure on the banks to increase their lending again, then there is every reason to believe that the worst is past for British homeowners".

She pointed to HSBC's pledge to increase mortgage lending by 20 per cent next year as a positive sign in this direction.

Those hoping to see further base rate cuts may have been encouraged by comments made by the Bank of England deputy governor Charles Bean in an interview with the Financial Times last week.

Professor Bean, who is a member of the rate-setting monetary policy committee, stated that it is "possible" the base rate will fall to zero per cent.

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