One of Scotland’s leading solicitor estate agents has suggested that the housing market will start to show the first signs of recovery when the Bank of England levels out interest rates.
As he predicts what lies in store for the Scottish property market in 2009, Warners’ estate agency partner Scott Brown says that there needs to be up to three months of steady interest rates before house hunters start looking to buy new properties.
Scott believes that buyers will be encouraged to enter the market if interest rate levels are kept steady for a minimum of two or three months – as they will not be tempted to put off their purchase in order to see if the base rate drops further.
He said: “Although the recent cuts in interest rates have been a good step in trying to re-invigorate the economy, there are many people who are waiting to see if they will fall further before they choose whether to buy property or not.
“If we have a couple of months where the rates stay unchanged, I think it will stir people into taking action. They will see that the Bank of England doesn’t plan to drop them any lower and will want to take advantage of the favourable rates before they start going back up.
“At the moment, I think we’re close to the bottom in terms of house prices though there may still be
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