The Bank of England's monetary policy committee (MPC) has moved to cut the base rate by one percentage point to two per cent.

It represents a third consecutive cut, following on from last month's decision to implement a reduction in the rate from 4.5 per cent to three per cent.

And while the MPC conceded that a normal volume of lending was unlikely to be restored without further measures, the decision may be welcomed by landlords across the UK who have existing tracker mortgages.

According to property portfolio managers Young Group, the cut will bolster the buy-to-let market by more than £400 million.

Furthermore, this reduction in base rate from 5.5 per cent at the start of this year to the current level of 2 per cent has provided a £1.4 billion boost to the sector, it suggested.

Neil Young, chief executive officer of Young Group, said that "a significant proportion"of buy-to-let investors on tracker mortgages were benefitting from the succession of cuts.

Some experts are also calling for stamp duty to be abolished to help further boost activity in the UK real estate market.ADNFCR-2002-ID-18914678-ADNFCR

Related posts:

  1. Rate cuts boost buy-to-let sector
  2. Rate cut ‘will not trigger rush of sales’
  3. Interest rates ‘should be cut’
  4. Landlords ‘should benefit from rate reductions’
  5. Interest rates ‘to come down by 1%’

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