The UK’s Daily Express newspaper is reporting today that the current record low interest rates have prompted a summer surge in sales to revitalise Britain’s housing market.
Their report says: “Estate agents have recorded an 11 per cent jump in buyers this month helped by an increasing number of low mortgage deals and more realistic asking prices from home sellers.
“June so far has seen the highest number of sales in three months, according to a report today by property analysts Hometrack.
“The property experts say they expect the sales increase to continue this summer as interest rates are kept low and lenders continue to pump out a rash of cheap mortgage deals as a result.
“Despite rising inflation, the Bank of England kept the base rate at a record low of 0.5 per cent for the 27th month in a row at its June meeting and lenders have already embarked on a round of mortgage cost-cutting as the threat of rate rises recedes.
“Economist Vicky Redwood, for Capital Economy, said she expects the pressure to raise interest rates to recede as overall inflation falls next year, boosted by the economic recovery. “We are not expecting interest rates to rise now until 2014 at the earliest,” she said.”Source: Daily Express