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Housebuilders welcome interest rate cuts

August 5, 2016Article by Chelsea Battle

A few days ago the Bank of England cut interest rates to a new historic low of 0.25%.This is a mixed blessing for housebuilders, who will benefit from a surge in demand and cheaper borrowing costs. However, they may suffer if banks become shy about dishing out bargain loans.

Interest rates have never seen zero this closely before and demand for property is likely to intensify, whether it is driven by cheap mortgages, a weaker pound or falling prices. This is all good news for housebuilders.

Ray Withers, CEO of Property Frontiers, comments on what this could mean for the UK’s construction industry.


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