22
Dec
Rate cuts already making impact, says housing firm
A housing firm has rejected the notion that 2009 will be a bad year
for transactions.
Miller Homes said today that there was a rise in buyer enquiries in
its southern region in the wake of November's 1.5 per cent interest
rate cut.
The firm also noted that various different housing firms, property
websites and the Land Registry have recorded similar trends.
National sales and marketing director for the firm Sue Warwick
suggested this offered hope for 2009, adding that if the government
makes good "the promise to put pressure on the banks to increase
their lending again, then there is every reason to believe that the
worst is past for British homeowners".
She pointed to HSBC's pledge to increase mortgage lending by 20 per
cent next year as a positive sign in this direction.
Those hoping to see further base rate cuts may have been encouraged
by comments made by the Bank of England deputy governor Charles
Bean in an interview with the Financial Times last week.
Professor Bean, who is a member of the rate-setting monetary policy
committee, stated that it is "possible" the base rate will fall to
zero per cent.
