25 August 2010

This news will come as reassurance to those looking to sell homes.

The forecast by chief economist at the Policy Exchange Andrew Lilico on the rate increase is dependent on an unlikely boom in lending by banks, this being the view of senior economic advisor Andrew Goodwin from Ernst & Young.

Homeowners who are keen to sell their homes may be encouraged by such a suggestion, as lower rates could mean cheaper mortgages and therefore more chance of people being able to afford to buy property.