Greycoat specialists share insights on the UK´s current housing trends. As we mentioned earlier this month, the top lending institutions like Nationwide and NatWest are raising their fixed interest rates. The industry was waiting on the Bank of England’s decision.
Many expected them to follow the competition and increase their interest rates. However, some industry experts and customers crossed their fingers that they would lower them. The Bank of England voted on May 9th to keep their interest rates at 5.25%. Greycoat adds how, Andrew Bailey, the governor of the Bank of England, explains why the institution is not lowering or raising interest rates.
While he feels that inflation is declining, there is not enough evidence to prove that the promising outlook is permanent. The Bank of England also needs proof that home prices are improving. Greycoat furthermore explains that the whole and pure industry reacted to the news, and everyone felt the decision was a wait-and-see tactic.
Some assumed the decrease would happen at this meeting, but most predict the cut will come at the next meeting or the following one. At Greycoat Real Estate, we felt the same. It was a safe call from the Bank of England policymakers to wait until the positive changes were concrete before making a bold move (Parkeray).
The voting bodes well for an eventual decrease down the line, Greycoat states. Nine policymakers tied to the government and parliament decided on the Bank of England’s interest rate status. Seven voted to keep rates the same, and two voted for a decrease. The decision will stand for six weeks. They meet again on June 21st for another vote on interest rates.