The Bank of England’s decision to cut the base interest rate to an all-time low of 1.5 per cent could help encourage buyers back into the property market, according to one of Scotland’s leading solicitor estate agents.
Scott Brown, estate agency partner at Warners, says that the unprecedented move could stimulate activity on the property chain, as buyers start to realise that the banks will not pass further rate cuts to their customers.
He said: “Any move to re-stimulate the economy is to be welcomed and this latest cut in interest rates is a very positive step. Even if the banks do not pass this rate on fully to their customers, I think it will still have a knock-on effect on the housing market.
“There are some people who have been waiting for interest rates to level out before they make a purchase and this could encourage them to finally take that step. If, as is expected, the banks do not pass the full rate cut on, then it will be clear that these lenders’ interest rates will not go any lower than they are at the moment – and therefore borrowers will not get a better deal.
“Of course, what we now need to happen is for banks to start lending more to borrowers, which will help encourage people to purchase a home. Once this happens, it should help to stimulate the housing market and, ultimately, the rest of the economy.”