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Agents say cut will kick-start house market
Sri Carmichael07.11.08
ESTATE agents today predicted the historic base rate cut to three per cent will kick-start buying even if some mortgage lenders hold back from passing on the full drop to borrowers.
Although most said it was too early to see a marked impact on the London housing market, some thought there would be a telltale rise in property viewings this weekend.
Ian Dickson, director of Winkworth's Hammersmith branch, said: "It's incredibly early but the office has seemed noticeably busier this morning.
"We've had a couple of extra bookings this weekend as well. It's not an avalanche, but I didn't expect that."
Ed Mead, of Douglas & Gordon, said: "Most buyers have become used to interest rate cuts not necessarily leading to interest rate cuts and that certainly seems to be the case so far this time.
"But such a huge cut in the base rate will nevertheless give people a boost and make things feel more affordable generally. It's a good fillip leading up to Christmas."
Peter Rollings, managing director of west and central London agent Marsh & Parsons was also optimistic. He said the huge fall in rates was "a pretty good reason to get back in the market".
Mr Rollings said he had emailed all 3,780 buyers registered with the firm, urging them to make their move before prices start to go up again.
Reader views (4)
Agents say cut will kick-start house market - what they really mean it will kick-start the debt market and their commissions. Don't be fooled by this clap-trap.
- Frederick, London, UK
Estate agents don't need high house prices or even rising house prices to see a nice upturn in their fortunes. They just need to see transactions, and the more the merrier, at any price.
At the moment there are too many things other than mortgage rates that are preventing transactions from happening.
I think the recent interest rate drop is a red herring for the housing market.
At 3% the bank rate is at some long term low. Although it may move lower in the short term, it certainly will be higher than this in the medium term and that is the level for which most people should be doing their financial planning. Or does anyone fancy a repeat of the unaffordable mortgage saga that in the USA sparked the credit crunch?
- Tim, London, UK
What a joke with 3 million unemployed these people need to be taken out and shot. STOP hyping the market and encouraging 1st time buyers getting into debt.
- Edwina, Croydon UK
According to estate agents NOW is always the best time to buy. It's a shame it's so hard to get genuinely independent advice on financial matters.
- Adrian, London
