Bank criticised over credit crunch says National Homebuyers
The Bank of England has been criticised for its handling of the credit crunch and potentially causing more people to seek a fast property sale.
[ClickPress, Tue Apr 15 2008] Steven Bell, chief economist at GLC, told BBC Radio Four that the Bank could have done more to help ease the problems in the financial markets.
Had action been taken, mortgage lenders may not have begun pulling out of the market as they have been and potentially fewer buyers would be seeking a fast property sale.
"Since August when [interest] rates have been cut twice, mortgage rates have basically not fallen. It's even worse than that; you can't get a mortgage from lenders unless you've got better credit terms," said Mr Bell.
"So they are withdrawing, and that means on interest rates the Bank of England can do two things; one is cut rates and the other one, which they haven't done enough of in my opinion, is ease this liquidity crisis that we keep hearing about," he added.
Fast property sale expert Julian King says, "Regardless of where the blame falls, there are thousands of homeowners who are losing up to £50 a day in the value of their property, as the lack of potential buyers drags the market down.
"As buyers are either unable or unwilling to enter the market, it severely affects the homeowner. This, we predict, will continue for sometime, despite probable cuts in the base rate".
Mr King is a director of National Homebuyers, the UK's leading fast property purchase firm that guarantees to make an offer to buy any property in the UK. The company is also market leader for Sell and Rent Back solutions where homeowners can sell their property for cash, but remain living in their home.