6
Feb
Interest rate cut needed to boost homeowners' confidence
The housing market is to set recover imminently but still requires
a cut in the interest rate to stimulate consumer confidence,
according to one of the UK’s largest construction
companies.
Analysts have widely predicted that the Bank will trim interest
rates by 0.25 per cent tomorrow.
According to Chris Coates, managing director of Galliford Try
Homes, such a move would hasten the recovery of the housing market
and restore battered confidence among homeowners in the
short-term.
He said: "While the housing market is set for a recovery, an
imminent rate cut is needed to increase consumer confidence and
property sales.
"The economy is on track and all the indicators are showing the
financial squeeze on consumers is short term and overall demand for
housing will continue to outstrip supply, especially in the
south-east."
Mr Coates added: "The general feeling is that interest rates are on
their way down this year and by initiating a cut now, homebuyers
and industry will move forward in 2008 with renewed
confidence."
