When will interest rates move again – Part 2
I blogged in June posing the question – when will interest rates move again? The property industry watches interest rates with huge anticipation. The effects felt throughout our industry of interest rate movements can be immense. Well this week we seemed to get the answer to the question.
The man answering the question was Mark Carney, the new Governor of the Bank of England. Since the new Governor took up his post on 1st July his hints during the week that base rates are unlikely to be raised ‘anytime soon’ have sent shares soaring with the FTSE up 6% in one week.
The bank held interest rates at 0.5% with the decision made at the first meeting of the Banks monetary policy committee.
The bad news in having low interest rates remains the poor savers who see returns on their cash deposits yielding very little indeed hence the attraction of the stock market and property once more.
The yields available on commercial property investments are attractive by any measure and the Property Companies, Pension Funds and property traders all see the value to be obtained.
If you are seeking advice on property investment please contact the Investment team at Harris Lamb on 0121 455 9455.