Sir Mervyn King, the outgoing governor of the Bank of England, has put an end to rate-setting as policy makers delayed printing further money amid increasing optimism in the economy, which is set to be reflected in housing.
In Sir Mervyn’s last decision on the rates, the bank stuck to its QE scheme to boost a steady economy, at £375bn, and held 0.5% interest rates.
Positive feedback from services, manufacturing and construction sectors gave a boost to the country’s growth prospects, which allowed the handover to Mark Carney, the new governor, to take place with economic recovery on course.
Government house building stimulus programmes have been given credit for breathing new life into the construction sector, with increased sales of new houses and prices, resulting in companies taking on more staff.
Industry figures revealed that the Government’s Help to Buy Housing programme has made a positive start with 4,000 houses reserved to buy in only two months. This will further help other industries throughout the UK thanks to the work needed on these homes, meaning that loft conversions and other renovations, whether in the Wirral or Wimbledon, can be expected to increase.
House prices further recorded the strongest annual rise for over two years in May, reported mortgage provider Halifax.
The Bank’s Monetary Policy Committee was expected to hold fire on further economic stimulus in June after a 0.3% growth in the economy in Q1, avoiding a triple-dip recession.
Economists have said that the country is “firing on all cylinders” after the three surveys on the economy revealed that growth improved greatly in May.