Double joy for home buyers and owners
Whilst some business groups may not be convinced that the 0.5% cut to 1% will be enough to ease the economic situation the Bank of England believes that this further decrease will encourage more lending - which can only be positive for the housing market.
Halifax has said it would pass the rate cut onto its customers with standard variable rate mortgages and it is expected that many more banks will do the same to provide a boost to borrowers.
As a leading national housebuilder committed to helping our customers this new base rate is something we welcome at Miller Homes - especially if it is passed on by the banks.
And the good news doesn’t end there – according to Halifax the price of homes rose by 1.9% in January compared to the previous month with the average price now reaching £163966.
Although it is too early to make any real conclusions about the housing market this has to be seen as a positive step in the right direction which also follows the increase in the number of new mortgages approved at the end of last year. Yet another sign that confidence is slowly but surely starting to return.