Housing market operators welcome rate freeze

Yesterday’s decision by the Bank of England’s monetary policy committee (MPC) has been welcomed by several housing industry insiders.

The National Association of Estate Agents (NAEA) said it was pleased to see the MPC “err on the side of caution”.

NAEA chief executive Peter Bolton King said he hoped the MPC continued to be cautious, thus avoiding “the danger of pushing some regional housing markets into a recession”.

“There are currently vast differences in the residential housing market across the UK,” he said.

He added: “I hope this is the start of a period of stability regarding rates, which will be significant in maintaining a stable housing market.”

Abbey bank also said it considered the MPC had taken a cautious approach, speculating that the committee “might have wanted to pause to see what effects their pre-emptive strike had”.

The comments came after the MPC decided yesterday not to increase the base rate from the current rate of 5.25 per cent.

© Adfero Ltd

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