Countrywide comment on MPC base rate decision to hold rates for 38th month

Countrywide

Thursday, May 10, 2012

Commenting on today's decision by the MPC to leave the base rate unchanged at 0.5% for the 38th consecutive month, Grenville Turner, Group Chief Executive of Countrywide, the UK's largest estate agent and property services group said:

"We would expect base rates to move upwards once signs of any improvement in the health of the UK economy are evident. With the UK in a technical recession and a number of indicators pointing towards a weak economy, it is not surprising that the Bank of England have decided to hold base rates at 0.5%.
"As the UK's largest mortgage broker and property services group, we see first-hand the issues that prospective homemovers face and although expected, the decision will be disappointing for savers struggling to gather a deposit. Unfortunately, it's also unlikely to help new borrowers and mortgage prisoners, who have recently seen their mortgage rates increase sharply regardless of the stable base rate.

"So despite interest rates remaining at a record low, deposit affordability and mortgage accessibility are the toughest hurdles for potential buyers and homemovers to overcome. These ever present hurdles are having an impact on the housing market and the number of house sales that will be completed this year."

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