So this week we see that the Bank of England has made interest rate cuts by 1.5 % to a 54-year low to 2%.
The Government is hoping that these cuts will be passed onto new mortgage lenders and hopefully the public will start buying again.
What implications does this have on our London Estate Agents? Is this a long term solution to stabilising the property market?
This week Halifax have stated that house prices are continuing to fall see BBC in November 2008 by 2.6%.
The Queen has also announced a 2 year mortgage protection plan by our Government to insure homeowners are given a chance to prevent repossession.
I guess we can look at this from two perspectives, first if there are less repossessions then Estate Agents inevitably get less transactions, with already Landlords not selling and ‘holding on’ attitude with Buyers waiting to ’see what happens’, transactions are less fluent.
The positive reaction from this ‘mortgage protection’ would be a long term rejuvenation plan for the already damaged market. So good in the long term.
With a little help from the Government we still see another low week for our London Estate Agent.