Released on: March 20, 2008, 9:03 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: Today may have seemed like one of those non-event days, when
any excitement and anticipation that existed before the Bank of England\'s monetary
policy committee (MPC) delivered its interest rate verdict dissipated at midday when
the announcement was made that there would be no change to the base rate.

Press Release Body: Today may have seemed like one of those non-event days, when any
excitement and anticipation that existed before the Bank of England\'s monetary
policy committee (MPC) delivered its interest rate verdict dissipated at midday when
the announcement was made that there would be no change to the base rate.

In many ways it was a non-event. For one thing, changes in the base rate in
successive months are very rare. The last time it happened was when the rate was
raised in May and June 2004. The last successive cuts were in 2001.

Furthermore, the evidence of January suggests that the MPC is unwilling to make
back-to-back reductions even when it is in a round of reductions. The committee
followed up the unanimous vote for a reduction in December with an emphatic eight to
one vote to hold in January. All eight who said no to a cut then backed one in
February. On this basis, when the minutes are published on February 19th the vote
will, if the pattern is continued, show a clear vote against a cut while still
leaving a March trimming open.

That remains to be seen, while in the meantime the eight experts quizzed by Adfero
last week who tipped a hold decision can be satisfied that their judgement was
sound.

However, the prospects for UK mortgage interest rates coming down, including
buy-to-let mortgages, may be more of a story than today\'s non-event was. Earlier
today figures from the Royal Institution of Chartered Surveyors (Rics) showed that
the situation for investors was a mixed one. On the downside, the survey showed that
one per cent more surveyors recorded a fall in the number of new instructions than
saw an increase, the first buy-to-let mortgage decrease since Rics began measuring
this sector in 1998. Yet on the other hand, the number of tenancies were up, with 16
per cent more surveyors reporting a rise in these than reporting a fall. Demand was
found to be particularly high, exceeding that of flats, in the family homes segment
of the market, a situation which refeleted a problem of undersupply.

Commenting on the figures, Rics spokesman Barry Hall stated: \"Established investors
continue to reap the benefits of the current uncertainty in the housing market and
have been enjoying the fruits of rising rents, but new investors are struggling to
get the necessary finance to enjoy this buoyant sector.\"

Given the positive news which those who are able to invest are enjoying, the issue
of interest rates and the ability to get mortgages is of greater importance. Of
course, part of the mortgage issue is down to the sort of products lenders are
willing to supply, a number which has dwindled after the credit crunch struck, but
as much as falling interest rates can help these will be welcome.

While releasing its monthly house price figures today Halifax tipped that there will
be two more interest rate cuts this year. While March may have been easy to rule
out, many investors will be watching with interest to see if matters are different
in April.

In today\'s world Property investment is an excellent investment option especially
investment in UK



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