The bank of England has announced that interest rates will remain the same at 0.5% for the month of June. This is the fourth consecutive month that the interest rate has remained unchanged.

It comes as no surprise though, as analysts have predicted the rate being stable at 0.5% for the coming months. It comes alongside a continued focus on quantitative easing by the bank of England.

The lower interest rate strategy seems to be working according to Royal Institute of Chartered Surveyors Chief Economist. He mentions that the strategy has helped bring confidence into the housing market and service sector as a whole. Negative news from the high street has reduced as well. There is however still a little bit of tension which has been enough reason to continue the current base interest rate.

The current buyers of property are more inclined to be those who have vast cash reserves. A continued low base interest rate will help bring more kinds of buyers back into the market. With the mortgage situation constantly improving, it seems everything is going in the right direction.

Not sure what this means for you as a property investor? Get in touch with a Clear Property Investment representative and get a free consultation.

View other news from July 2009