2 Dec

Rate cuts 'will boost housing market'

Rate cuts 'will boost housing market'

The housing market will bounce back if the Bank of England's monetary policy committee (MPC) keeps cutting rates, an expert has stated.

Managing director of Smartnewhomes.com Dave Bexon said the website of his company, which sells new-build property, saw a 14 per cent rise in enquiries the day after the 1.5 per cent cut was instigated by the MPC last month.

He commented: "While it is by no means a sales surge, it shows the extent of people still present on the periphery of the housing market, assessing potential opportunities to make their move."

As a result, more rate cuts - provided the government presses lenders to pass them on to their mortgages - will lead to greater market activity, he added.

Mr Bexon's wish for a further reduction this month is likely to be fulfilled, according to the Adfero poll of experts.

All 11 surveyed tipped a slashing of the rate by at least 0.5 per cent.

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