News
movewithus believes rate cut may mean house price stability by June 09
10 November 2008
Robin King, founding director of property specialist movewithus, believes that last week’s rate cut may be the catalyst for stabilising house prices - possibly by as early as summer 2009.
Asked about the effect of the cut on the recovery of the property market, Robin King commented: “This drastic rate cut underlines the severity of the current conditions. Hopes that it will have an immediate impact may be exaggerated but it is certainly a positive step towards the recovery of the housing market.”
According to King, the problem remains that a lack of affordable lending is putting many buyers off taking advantage of the lower prices. Once demand increases, prices will begin to stabilise. This, King argues, needs to be the main area of focus for Government efforts.
King explained: “As part of the Government’s recent rescue package, banks agreed that they would maintain lending at 2007 levels. We hope that this rate cut encourages banks to introduce more mortgage products under four percent, which would increase activity in line with this agreement."
Many of the country's top lenders have already pledged to pass on the full 1.5% cut by December.
"We are looking forward to a more buoyant housing market in spring, with house price stability the next milestone in the recovery of the housing market. This could occur as early as June 2009.”
Source
http://www.movewithus.co.uk/mwu-news/00,news,56584,468,00.htm (launches a new window)
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