As you’ve seen from our other news updates the UK market remains cool as buyers and sellers grapple with higher borrowing costs.
The long anticipated recovery is directly dependent on the mortgage market. And that in turn is directly affected by the Bank of England base rate which currently stands at 5.25%.
The global economy is generally affected by high interest rates and high inflation. When looking for global recovery we normally look West first to the US for an indication of what’s coming our way. However it’s likely Europe will be the first to reduce their Bank Base Rate.
There are 9 Committee Members at the Bank of England who set the Central Bank Base Rate. For the last couple of months 2 of their members have been voting to reduce the UK rate to 5.0%. In the US however there are 12 members of the Federal Committee and none of them are voting for a rate reduction.
The International Monetary Fund said the UK Economy was “approaching a soft landing” after last years recession. The IMF have also forecast some modest growth for the UK by the end of this year.
So all eyes on the Central Banks in Europe, the US and the UK and lets get this recovery started.
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