I understand why rates didn’t fall today, but that doesn’t mean to say I am not disappointed.
Yes, the world is in a difficult place and inflation is an issue that hasn’t been beaten yet. But I think that the great British public is due something that has been all too rare for far too long – some good news.
Interest rates did not fall today
GETTY
People out there are struggling and can’t afford many of life’s essentials, let alone treats and luxuries. Those with some money to spend simply aren’t because they are worried about what the future holds, so they too are preserving what they can.
Businesses are facing a perfect storm of high prices, low staff motivation, an increased minimum wage and, of course, a thumping new National Insurance hike in April.
Many are not recruiting because of it. Confidence is low, and the outlook is bleak. The housing market, my particular bit of the economy, is yet to feel the full effects of the gloom.
Prices are steady, and buyers are buying. But there are too few able to make the leap from a rental home to a place of their own, in part thanks to interest rates set when things were a hell of a lot better than they are now.
Labour came into power and enthusiastically talked down the outlook. Their glum words have had the desired effect. I cannot remember a time of such national pessimism since the early ’90s.
The 2008 crash was not this gloomy. The national mood desperately needs a boost.
The property market is still suffering from huge undersupply, and planning delays – a topic that Keir Starmer spoke well on last week.
Although Labour entered this Parliament with a big ambition to deliver 1.5 million new homes within the next five years, the reality is that planning permission approvals in England are now at the lowest level in more than a decade.
I’m not convinced the Government is going far or fast enough to tackle the huge hurdles that exist to delivering new homes and today’s interest rate decision did nothing to help.
Jonathan is the founder of House Buy Fast. For more information visit www.housebuyfast.co.uk
