David Bexon, chief executive of SmartNewHomes.com commented “With four of the nine members voting for a reduction and the MPC acknowledging the changes in economic circumstances, we believe that a decrease in the base rate is just around the corner. Having held interest rates for the previous ten months, the Bank of England has achieved its desired effect of stabilising rising house prices. However continuing to maintain the current rate of 4.75% will only act to further dampen economic activity, with reports showing that consumer spending, manufacturing and the housing market have all now slowed to a crawl.
“A decrease in the base rate will increase customer confidence and could be the catalyst to ensure that we see positive growth in house prices this year. The market is still suffering the hangover of the four base rate rises last year and without a downwards adjustment, there is danger of total stagnation.”
