5
Dec
Rate cut forecast tipped to boost buyer sentiment
Buyer confidence and interest in returning to the housing market
are likely to improve as a result of yesterday's base rate cut, the
head of a new build housing firm has stated.
Smartnewhomes.com managing director Dave Bexon said the move "will
offer another boost to consumer confidence and could prompt a surge
in speculative buyers looking to enter the new homes market".
Noting that the day after the last cut saw a 14 per cent rise in
enquiries, Mr Bexon suggested a similar occurrence may take place
this time.
However, he added, it is important to see lenders pass on the cut
and for the overall level of mortgage lending to rise.
The Association of Mortgage Intermediaries (AMI) made a similar
point.
AMI director general Chris Cummings said the cut was "welcome", but
added that it was "vital" for the level of mortgage availability to
increase.
