The Bank of England will need to adjust the interest rate in coming months in order to boost the housing market, it has been claimed.
According to Convex.net, the Monetary Policy Committee decision to hold the
interest rate at five per cent will be disappointing to the
industry, which is "already stalling".
Duncan Samuel, managing director of the online property conveyancy website, commented that the lack of activity on the part of lenders is having an adverse effect on the market.
"It is clear that very soon the Bank of England will need to do something to bring the Libor rate down to free up
mortgage funds," he said.
In response to the decision yesterday (May 8th), the Royal Institute of Chartered Surveyors expressed its disillusionment, commenting that housing transactions have collapsed and consumer confidence has fallen - something which needs to be remedied.
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