Peter Rollings' response to Bank of England's confirmation of low interest rates until unemployment falls
Tue 06 Aug 2013
"With his statement today, Mark Carney has given the UKs housing market a significant boost. The London market, in particular, is presently underpinned by rising positive sentiment due in part to the Governments Funding for Lending Scheme and the Help to Buy initiatives as well as strong demand from home and abroad. Growth in the countrys GDP, reduction in unemployment and a feeling that we are finally out of the economic badlands means that the market can now be assured of certainty as far as interest rates are concerned.
"This is a highly important statement which will allow lenders to offer attractive fixed rate deals to potential buyers and will surely lead to greater demand and activity in both the resale market and provide a fillip for first time buyers. The Governor is implicitly saying interest rates will not rise until million more people are in work. This will give the UK market a welcome stability."