10
Jul
Interest rates held at 5%
The Bank of England's monetary policy committee (MPC) has decided
to hold interest rates at five per cent.
This will come as a disappointment to many property organisations,
as the industry widely called for a cut in the base rate to help
boost the housing market.
However, the Royal Institution of Chartered Surveyors (RICS)
acknowledged the Bank's need to balance economic growth against
rising inflation.
It predicted that the current downturn will prompt the body to cut
rates later in the year.
The organisation noted that although tighter lending conditions are
a symptom of the UK's wider financial problems, "there are still
measures that the government can take to ease the pain of first
time buyers … for example, fundamental reform of stamp duty
from a 'slab' to a 'marginal' system would make it fairer".
Earlier this week, RICS found that first-time buyers on a low
income bracket would have to save up an entire year's combined
salaries to be able to step onto the property ladder.
