|
No resurrection for housing market despite rate cut, say experts
15 April 2008 11:30
Many existing homeowners and first-time buyers (FTBs) alike are likely to rent their next home despite the recent base rate reduction, industry commentators have claimed.
A recent poll by change of address service iammoving.com found that one in seven home movers were considering leaving the property ladder to free up some cash, yet since then the Bank of England has lowered the base rate from 5.25 to five per cent.
However, the website's Peter Beckett has warned that a further series of cuts are still needed, explaining that at present homeowners who are considering moving see renting as a better alternative because they feel that the housing market is continuing to slow.
Similarly, Duncan Samuel from online property conveyors Convex.net predicted that FTBs would not yet be returning in large numbers due to the widespread withdrawal of high loan-to-value mortgages and a general sense that the market has further to fall.
He also voiced the opinion that further rate reductions would help, but insisted that they needed to come quickly and that the government should look at other ways of helping FTBs as well, such as lowering the cost of stamp duty.
|
