UK developers demanding cut in interest rates

Property developers are demanding a 0.5 per cent cut in interest rates to help prop up the slumping UK housing market. The Home Builders Federation (HBF) called on the Bank of England the reduce rates saying Britain faced an

“serious economic slowdown”.

Saying a rate cut was “imperative”, the group warned the housing market has been brought to a halt in the past thanks to higher interest rates. The Bank of England’s monetary policy committee meets on Thursday to discuss rates, but a cut or change of any kind is not predicted.

HBF economic affairs director John Stewart said:

“Previous economic crises have led to housing market slumps, but this time the cart is leading the horse, with the speed and depth of the downturn threatening a serious wider economic crisis.

“We just cannot rely on lessons learnt and solutions based on past downturns as this is a completely new situation in which we find ourselves.”

Federation officials added members had been “shocked” by the downturn, which has seen approval for mortgages fall by 43 per cent. The HBF’s 300 member firms account for some 80 per cent of all new homes built in England and Wales in any one year.

Related posts:

1. Mixed reaction to decision to hold UK interest rates
2. UK housing market hit by Bank of England
3. Bank of England 1 Property Developers 0
4. UK Interest rate - divorced from lender action
5. Indian chamber demands mortgage interest rate reduction