12-12-2007
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Please see below for our December 2007 issue of Landlord News.
1. BANK OF ENGLAND RATE CUT
The Bank of England cut interest rates to 5.5% from 5.75% on 6th December 2007 which was welcomed throughout the property industry. The move will ease pressures on lenders and borrowers, in particular the anticipated 1.4 million borrowers coming off fixed rate products in the next year.
The decision to cut bank base rates will both ease affordability issues which have been at the heart of the slowdown and bring some potential buyers back into the market to increase turnover. However a return to the strong house price growth which occurred in the first part of 2007 is unlikely. Some UK leading estate agents predict conservative growth of up to 3% in 2008 whilst others forecast a flat market with no movement.