Interest rate 'not providing confidence'

The recent decision by the Bank of England’s monetary policy committee (MPC) to reduce the base rate of interest to 5.25 per cent has not provided those looking to buy a house in Scotland or elsewhere in the UK with confidence, according to a new study.

Research carried out by property website HotProperty.co.uk suggests that 40 per cent of people have not had their faith in the housing market boosted by the reduction.

The firm’s managing director Shawn Luetchens states that a cut was "much anticipated" by the property industry.

"It was hoped it would provide a vital boost to consumer confidence and jump-start the market. At this early stage it looks like it hasn’t made quite the impact that was expected," he comments.

He supposes that this may be because the immediate benefits of the reduction are not automatically passed on to those looking to buy a house in Scotland or anywhere else in the UK.

The MPC cut interest rates by 0.25 per cent last week.