First rate drop since 2005 marks turning point for market

The Bank of England finally reduced interest rates today, for the first time since August 2005. The base rate dropped by a quarter percentage point to 5.5% in a move that is heartily welcomed by the National Association of Estate Agents (NAEA).

Peter Bolton King, Chief Executive at the NAEA, comments: “This is just what the market needed. There has been considerable doom and gloom lately as we have had to endure the fallout from some significant national and international events. This latest rate decrease will at least go some way towards repairing the damage done. I’m hopeful this will be the turning point in consumer confidence that will set the market back on track again.

“The rate drop will be especially good news for those who are coming off fixed rate mortgages shortly. Similarly, first time buyers will benefit as the lower rates help to reduce the burden of costs currently carried by those purchasing their first home.”