Buying could increase as Bank reduces rates

Posted: 05 Dec 2008 09:33:56 GMT

            Property News - Buying could increase as Bank reduces rates

The Bank of England has for the third month in a row announced that interest rates have been cut, taking last month's three per cent decision down to just two per cent yesterday (December 4th).

Mixed reactions have been voiced over the decision made by the Monetary Policy Committee (MPC), as it has been suggested that, following too slow a reaction to the economy, the MPC is now acting too sharply.

However, those hoping to sell their property will no doubt welcome the decision, which will ease the price of their mortgage while also attracting more buyers to the market.

However, lenders could fail to pass on the reduction, which would leave the market stagnant: "What is critical for business and consumers alike is that this reduction is passed on," a CBI spokesperson said.

"The economy is stalling, inflation is expected to undershoot the Bank's own target and the headline rate of inflation is likely to turn negative for at least a few months in 2010."

To attract more buyers to a property, selling online could be the perfect answer to many who have not yet managed to sell their home through an estate agent.

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