Not Bold Enough say Wakefield Estate Agents

15th February 2008

Admittedly, the Governor of the Bank of England is in a difficult situation by trying to stimulate the economy without generating over much by way of inflationary pressure.  

Last weeks cut in the mortgage interest rate by a quarter of a percent, following the quarter of a percent drop in December, will not have a great affect upon the housing market.  The first reason is that many of the lenders are not passing on the full interest rate cuts to their borrowers thereby negating the Bank of England’s endeavour.  Secondly, the ‘Credit Crunch’ means that a good number of people who could have got a mortgage last year now cannot and so any interest rate movement, be it up or down, does not affect them in the slightest. 

So last week’s news was really no news at all. 

I believe that we will certainly see an improvement in the market in Wakefield in the coming months but this will be due to normal seasonal variations as we approach the Spring period, lighter nights and the traditional Easter Bank Holiday.  It will not have much to do with an improved economic or financial situation.

Our experience so far this year certainly indicates that correctly priced properties are still finding buyers.  Realism is the key. 

Dawn Lavelle
Manager
Manning Stainton Wakefield
T: 01924 234 888
F: 01924 234 880