Rates could be lower still this week

Posted: 06 Jan 2009 11:20:06 GMT

The Bank of England could further reduce base rates again this week in an attempt to draw more buyers to the UK's ailing housing market.

However, severe cuts to the base rate last year were met with pessimism regarding the power they would have in bringing new buyers to the market.

Speaking about the MPC's previous rate cuts which brought the base rate to just two per cent Liam Bailey, head of residential research at Knight Frank, explained: "This cut is unlikely to have any immediate effect on the housing market, although it may tempt some buyers to make a decision.

"Prices will continue to fall into 2009. Much depends on whether the new rate is passed on to borrowers."

Unfortunately for homeowners, there are many more external factors determining house prices at present, and it is unlikely that much can be done to stop house prices falling in the next 12 months.

Homeowners hoping for the highest price possible when selling their home could benefit from listing it online, which can attract far more buyers than a typical estate agent.

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