Royal Institute of Chartered Surveyors calls for further rate cuts
February 20, 2008
The Royal Institute of Chartered Surveyors (RICS) has stated that the Bank of England needs to cut interest rates as early as possible in order to avoid a housing market meltdown that could be similar to that seen in the 1990s. Many had expected the interest rate to be cut in January but the base rate remained unchanged.
Officials from RICS have stated that further interest rate cuts this year were crucial in order to try and avoid a house price crash. The latest RICS survey was ‘maybe the worst we have had in 17 years’ according to one estate agent.
Speaking of the interest rate cut that was applied to the base rate in December, one estate agent said: ‘The quarter point reduction was welcomed but we need more to follow in the New Year if the early 90s property recession is to be averted. If we don’t, the country can expect a bleak time for the next two to five years.’
There are a number of factors that have affected the housing market, and this includes lack of affordability from would-be buyers, tighter credit conditions because of the credit crunch, and the controversial Home Information Packs. One official said: ‘Home Information Packs plus Christmas plus interest rates plus credit crunch equals hard times.’
Written by Peter · Filed Under News Mortgages
Why do the RICS keep hammering HIPS’s and never coming up with an alternative. They like to protect the mayhem they have enjoyed for many a profitable year and are not thinking of the end user. Explain to me why having all the information up front is such a bad thing, before you make a decision on the most expensive thing you buy in your life. Having had one of there very expensive drive by surveys I am not suprised they do not want change. HIP’s are not ideal they should include the original HOME CONDITON REPORT survey (which the RICS was also firmly against ,protectionism me thinks) but it is a start and better than nothing.To many fat cats have profited from abortive sales in the past, a survey being required every time, lets hope this ends!!