Property industry round-up on the Bank of England rate cut:
Ben Madden, managing director of London estate agents Thorgills, said:
“The first rate cut for seven years can only be a positive for the UK property market. For many homeowners, their mortgage costs have just fallen even further.
“The property market has by no means imploded since the vote to leave the EU but the decision to cut rates further, and also print more money, should inject additional confidence into UK bricks and mortar.
“Alongside the underlying supply crisis, this could see house prices hold firm for the foreseeable future, particularly in areas outside prime central London.
“Long-term low interest rates have undoubtedly boosted demand in the property market, putting upward pressure on house prices. This new rate cut almost certainly won’t send prices up, but it could certainly help to stabilise them.
“Sadly, while homeowners and many in the property market will benefit, the Bank of England’s decision will hit savers hard once again.”
Mark Hayward, Managing Director, National Association of Estate Agents comments on today’s interest rate cut announcement from the Bank of England:
“Today’s interest rate cut announcement will be welcome news for many current homeowners. However, it represents a body blow for savers and those hoping to get their first foot on the property ladder.
“Homeowners with outstanding mortgages are currently enjoying some of the lowest fixed rate mortgages seen for a long while, with lenders battling it out to offer the cheapest deal. Cutting interest rates further is likely to improve confidence among those prospective house-buyers who may have put their search on hold, following the Brexit vote in June.
“But for those saving to pay a deposit on a future home, the interest rate cut will be frustrating. The last government focused heavily on supporting first time buyers (FTBs), with the introduction of schemes such as Help to Buy. Many of those looking for help now will have to wait for initiatives such as the Lifetime ISA to launch, which will then only help those under 40 to save for a home.
“The outcome of the today’s rate cut is simple – we will see aspiring homeowners saving harder for longer, which will no doubt have an impact on the number of first time buyers succeeding in their dream of acquiring their own home.”
Founder and CEO of eMoov.co.uk, Russell Quirk, commented:
“Today’s cut in interest rates will come as welcome news to UK homebuyers who will continue to enjoy rock-bottom mortgage rates as a result of this latest cut.
“The Brexit result brought about sensationalist prophecies of a less stable housing market and, as a result, many would have been deterred from buying. However, today’s news should come as a reassurance that the UK property market is in a more than stable condition.
“A cut in interest rates is the antidote for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.”