After last month’s vote by the Monetary Policy Committee to keep the Bank of England Base Rate at 0.50%, talk now turns to this month’s decision.
Expectation for a cut in base rate is running high, with experts in the Sunday Express also predicting an increase in Quantative Easing, as well as an extension to the Funding for Lending scheme to boost confidence in the UK economy.
Looking at the housing market itself, figures published in the Sunday Telegraph revealed a considerable drop in the number of younger homeowners. Recent figures reveal that in 2015, just 45% of under-45’s owned a property, compared to 64% in 2003-04. Reasons for this fall in numbers include rent inflation, and therefore the ability to save for a deposit, the size of the deposit required, and mortgage accessibility.
At the other end of the scale, the Financial Times reported on the increasing number of homeowners replying on equity from their property to boost their retirement income. A recent report highlighted however that many people now carry mortgage debt into retirement, and that coupled with the cost of care into old age and a longer time spent in retirement due to life expectancies could seriously over-stretch any available equity.
What the papers said about base rate predictions and homeowner expectations