The Bank of England has raised its base lending rate to 0.75% from 0.5% following a unanimous vote by its Monetary Policy Committee (MPC).
This is the first rise since November last year and the first time the bank rate has exceeded 0.5% since the dark days following the banking crisis when the base interest rate was reduced from 1% to 0.5% in early 2009.
The announcement follows recent cheery economic reports including inflation that appears to be under control at 2.4%, improving economic output in the medium term and increasing employment.
This, the committee reasoned, was underlined by forecasted GDP growth of 1.75% this year and better than expected global demand for British goods.
Malcolm Prescott, Managing Director of local award winning estate agents Webbers comments “this is no great surprise, there have been mutterings for some months now that the next change was likely a slight rise and we must remember that rates are still at a record low and have been for ten years. Indeed, we should remind ourselves that back in 2008, before the economic dip, the base rate was around 5%.”
Mr Prescott goes on to say “There are still some very competitive mortgage products available in particular for first time buyers which is a growth area of the market, some commentators suggest that first time buyers will be one of the largest group of buyers in 2018 – so no-one should panic, the press take great delight in creating that reaction but we remain with our feet on the ground – we have a good steady market”.
Webbers Property Services Ltd has 15 residential sales & lettings offices across Somerset, Devon & Cornwall with specialist new homes, auction, commercial and Fine & Country depts... Webbers are founder members of the Relocation Agent Network and The Guild of Property Professionals who between them have well over 1,000 offices across the UK.