Bank of England base rate drop – helpful to investors and buyers?
The Bank of England has today confirmed the base rate has dropped to 0.25%; a further reduction to the previous 7 year historically-low level of 0.5% set to help the economy following the financial crisis. The new rate follows the decision in June for Britain to leave the EU.
Is this helpful to investors and buyers? Frank Webster of Finders Keepers’ Inspired Investment division welcomed today’s decision and believes this announcement will certainly assist investors who want stability and clarity on the cost to acquire a property following additional costs levied on landlords by the previous Chancellor. Although the new Chancellor has hinted he has no plans to change the tax and stamp duty regime, the recent mortgage price war and the introduction of some seemingly very competitive longer-term deals (some of which are available to investors) as banks and building societies compete for business means it is now possible to secure loans at record low levels.
Frank added, “We have seen a noticeable increase in requests from investors to acquire property. Savings rates are non-existent and although they know the dream market is not going to happen in Oxfordshire due to a severe shortage of housing which will take many years to rectify – if it is ever fully and properly addressed – they want to exploit a more flexible attitude from vendors and developers alike”.
“Most investors understand that property investment in Oxfordshire is for the medium- to long-term, but that it offers a balance of ring-fencing capital alongside higher levels of capital gains and with regular income. The choice of where and what to buy requires the ‘professional eye’ now more than ever for advice and guidance in association with other professional advisors”.
Frank concluded “we are seeing more enquiries from overseas investors who wish to capitalise on a softer pound. With over 40 years’ experience in the local property market, Finders Keepers Inspired Investment team can offer expert advice to help investors and future owner-occupiers alike – we have several opportunities to acquire property that are not yet on the open market”.
Call the Inspired Investment team on 01865 302308 or email firstname.lastname@example.org