Bank holds interest rates at 5.75 per cent

News Category: Industry News

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The Bank of England has opted to keep interest rates unchanged this month.

Earlier today (October 4th), the Bank's Monetary Policy Committee (MPC) decided to fix rates at 5.75 per cent for the month.

The National Association of Estate Agents (NAEA) welcomed the move, saying that it could help to restore some confidence in the housing market in the UK.

"The UK housing market has had to withstand a number of major events in the past 12 months," explained chief executive Peter Bolton King.

"We are pleased that the Bank has chosen not to increase rates this month and hope that it will continue to at least maintain, if not reduce rates, over the remainder of the year."

However, James Caldwell, director of Fair Investment Company, said that the move would add futher pressure to homeowners and could increase the number of people opting to rent.

He explained: "The Monetary Policy Committee’s decision to maintain the bank rate at 5.75 per cent is disappointing for homeowners - a cut now would have been very useful."

Recently, Paragon Mortgages said that landlords have been able to maintain yields on their properties by altering the gearing of their investment.

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