Phil Tennant, Regional Sales Director, Hamptons International said:
"Hamptons International welcomes today’s announcement that the Bank of England Base Rate will be cut by 0.5% to 1.5%, which is likely to have unexpected effects on the housing market in terms of property supply.
When the housing market underwent a correction in the mid 1970’s and early 1990’s, the average vendor was already feeling considerable pressure from double figures interest rates, making mortgage repayments difficult for many. This pressure resulted in a considerable increase in supply of new properties, which, in combination with a lack of mortgage affordability led to a slow and painful decline in prices over several years. Now, with the latest cuts pushing interest rates lower than they have been for 315 years, the pressure is lifted for many vendors who may have otherwise been forced to sell. It is therefore conceivable that we will see a constriction in supply over the next few months.
Lower interest rates will, as always, help to increase demand from potential purchasers. This combination of changes in both demand and supply could lead to less downward pressure on house prices.”
Media enquiries please contact:
Lucy Gaynor, PR Manager, Hamptons International
0207 589 9775 or gaynorl@hamptons-int.com
Jane Jorgensen, Associate Director – PR, Hamptons International
0207 589 9775 or jorgensenj@hamptons-int.com
Hamptons International
Hamptons International is one of the premier international residential agents offering an extensive portfolio of UK and international property. Services include sales, lettings, residential developments, property management and mortgages. The company is owned and operated as a subsidiary of Emaar Properties (DFM: EMAAR), one of the world’s largest real estate companies.
After more than 130 years experience, Hamptons offers unrivalled expertise and service in its market. Hamptons is headquartered in London and currently has a UK network of over 85 offices.