5
Aug
House prices to grow 'due to low interest rates'
The value of houses for sale in the UK could result in healthy
growth as the result of low interest rates, according to one
expert.
Lucian Cook, director at Savills, said that a prolonged period of
low interest rates will "put a floor on house prices".
He stated that if the rates continue to stay that low, "it will
give a springboard for house price growth when other conditions are
right".
Mr Cook said that this will translate into some "pretty decent
house price growth"
His comments came in response to the Bank of England's Monetary
Policy Committee vote, taken today (August 5th), to maintain the
base rate on commercial bank reserves at 0.5 per cent.
The last change in the base rate occurred in March 2009, when it
was reduced by 0.5 percentage points.
Mr Cook added that an economic recovery together with the low base
rate will enable homeowners to see a substantial increase on their
property values.
