Monday, October 13, 2008
The last month has been a truly extraordinary one for the UK housing market. The UK government pledged up to £500 billion to buy shares in UK banks, extend loans and underwrite inter-bank loans. The Bank of England (BoE), meanwhile, took the unprecedented step of cutting the base rate by 0.5% in concert with several other central banks including the US Fed and the ECB. An immediate effect of these dramatic moves has been to raise hopes amongst home sellers that UK house prices may be spared further falls.