Newspaper article The Journal (Newcastle, England)

Interest Rate Cuts Put Some Life into Market

Newspaper article The Journal (Newcastle, England)

Interest Rate Cuts Put Some Life into Market

Article excerpt

Byline: By Francesca Craggs

WITH borrowing costs at their lowest since 1955 and keen property bargains to be had, now really is a good time to buy a home, according to North East property experts.

The recent interest rate slash has provided a welcome boost to the region's property market, particularly in the new homes sector. Builders are reporting a marked increase in demand and renewed interest from first-time buyers.

There are some excellent bargains to be had, but some builders are warning that these deals are only for the short term.

Shepherd Homes' sales and marketing director, David Smith, said: "We have taken a transparent approach to our offers with no gimmicks built in to our prices, just straightforward reductions on selected homes.

"Demand for these properties has increased and we have had a surge of sales to first time buyers, which is a positive indication that market confidence is increasing.

However, market forces dictate that increased demand will lead to increased prices, therefore now is indeed an ideal time to buy - especially with the recent interest rate cut from the Bank of England.

"Our own website experienced a 640% spike in direct traffic the day after the interest rate announcement, which is a good sign things are looking up."

Bernard Rooney, managing director of Barratt North East, said: "There are many good deals around at the moment, but the best are only going to be available for the next week or two, for buyers who can legally complete their purchase before Christmas.

"After that, there will still be incentives but not at the levels currently on offer. We believe that the market will improve after Christmas, as lower interest rates feed through, and in fact we're already seeing a marked increase in sales inquiries and visitor levels since the Bank of England's rate cut last week. …

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