Half a percentage point has been shaved off interest rates by the Bank of England today and they now stand at 1%. Some are already speculating that rates will drop to 0% before the year is out, however, others – including the Federation of Small Businesses – argue that they should have stayed at 1.5%.
Providing lenders pass the cut on, it is hoped that this will encourage more buyers into the property market. Philip Selway of The Buying Solution, a property buying agency, says: ‘We have never been so busy with new client enquiries in both London and the Country, with buyers keeping an eye on what they perceive to be the bottom of the market. Clients who need to purchase this year are aiming to do so whilst house prices are still on a downward slope, and with savings rates at an all time low, now is looking like a good time for them to protect their capital in the long term by way of property purchase.’
