Thursday, Dec 14, 2006
Rate increase could be 'rise too far'
Warning as base reaches 5%: Estate Agency News
THE latest interest rate increase could be a rise too far for a significant number of areas in the UK where the housing market is under-performing, the National Association of Estate Agents have warned.
As had been widely expected, the Bank of England decided to raise rates from 4.75 per cent to five per cent, following a similar increase in August.
Peter Bolton King, the chief executive of the NAEA, said: “The national picture for the residential property market appears to be extremely strong and buoyant but there are vast regional differences with some areas significantly out -performing others.
Posted by jason @ 07:51 AM (169 views) Add Comment
4 Comments
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1. paul said...
OOoooh. A "warning". I bet that has the government and BofE quaking in their boots.
"The Bank of England would have been well advised to listen to recent calls from the industry and hold rates"
Calls from industry? Calls from Peter Bolton more like. Rather like the myth of King Canute "warning" the sea not to encroach on his kingdom any more.
2. Distant_daz said...
David Bexon said: “The 0.25 per cent rise was a dangerous decision and could prove extremely detrimental to the market.
“The Bank of England would have been well advised to listen to recent calls from the industry and hold rates, at least until the end of 2006.
Who do these people think they are?? The BOE would be well advised! Incredable. The BOE does not target house prices (surposedly) so this EA should know his comments are meaningless - all he is interested in is how it will affect his profits!!
3. Bidin'matime said...
I'm sure that the BOE knows the tight-rope it walks - and can see that the other end is looking decidedly weak - they can run or they can stand still, but it's gonna break anyway!
4. Marzipan said...
So did the EA's give a warning when interest rates were lowered? did they say - no don't lower rates, that will encourage people to take on too much debt!
of course they didn't