The fallout from a Bank of England decision to hold UK interest rates has continued, with agents and property developers calling for a cut next time around. Property consultants Cluttons called the Bank’s approach a “laissez-faire” attitude and said the downturn in the property market and wider economy were more serious concerns than rising inflation.
On Thursday the Bank’s monetary policy committee opted to hold rates at five percent, ignoring calls for a cut to boost consumer confidence. Richard Cotton, senior partner at Cluttons, said:
“The property industry needs to hear a positive message from the Bank, that it understands the difficulties in the industry and is doing something about it.
“Maintaining rates at five per cent will not give consumers any confidence in the Bank’s ability to manage this crisis, which will result in a worsening of current conditions in the property market and wider economy.”
Agents Kinleigh Folkard and Hayward said the Bank had done the property market “no favours” with the decision.
John Phillips, financial services director at the firm, said:
“Maintaining interest rates at five per cent was to be expected with the committee keeping a close eye on inflation. But this decision will have a knock-on effect across the whole economy.”
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