Interest rate cut will not encourage first-time buyers
News Category: Industry News
Published: 11-Apr-2008
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The latest base rate cut, announced by the Bank of England's Monetary Policy Committee (MPC) yesterday (Thursday, April 10th), is unlikely to tempt any new buyers to enter the property market.
That is according to Duncan Samuel, managing director of online property conveyancers Convex.net, who maintained that "first-time buyers will still not be coming to the market in the current climate".
He added that first-time buyers constituted an essential part of the market.
Mr Samuel commented: "Despite this cut, first time-buyers will still not be coming to the market in the current climate. The whole market is resting on first-time buyers and in the housing chains we are dealing with as conveyancers it is the bottom where the nerves are at their greatest."
He went on to note that first-time buyers were currently "thin on the ground" owing to the fact that manymortgage lenders had withdrawn high loan-to-value (LTV) products.
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