Disappointment over BoE rate decision

The Bank of England's (BoE) decision to maintain a five per cent interest rate has disappointed some in the housing industry, it has emerged.

Today (May 8th), the bank's Monetary Policy Committee has voted to keep the official bank rate paid on commercial bank reserves at five per cent despite some suggestions that a rate cut would boost the housing market from industry bodies such as the Council of Mortgage Lenders.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), commented: "The Rics is disappointed that the MPC chose to leave the base rate on hold today.

"Housing transactions have collapsed, consumer confidence has sunk to its lowest level since 1992, the service sector appears close to stagnation … and the retail sector is under immense pressure."

Similarly, SmartNewHomes.com has expressed its disillusionment at the decision, stating that the UK needs another cut in rates, adding that lenders should take up the BoE liquidity offering to "get lending moving".

When moving home people should be sure to invest in a self-storage system.


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