David Bexon, chief executive of SmartNewHomes.com, is urging the Bank of England’s Monetary Policy Committee not to increase the Base Rate when they meet this Thursday. He comments: “The four rises last year had a rapid effect on the market and well and truly put the brake on rising house prices. Prices are now stable across the country with some areas seeing a drop in values. Our fear is that a further rise, as predicted by some economists and hinted at by the split in votes at the last committee, could be the catalyst to a serious downturn in the market.
“Consumers are nervous and this is showing both in the housing market and on the high street, with buyers reluctant to commit to sales and spending down over the Easter period. Increasing rates at this time will be the final straw for many homeowners and consumers, especially those with large mortgages, and the unfavourable effects will be seen across the economy.”
