RICS guarded on rate cut effect

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The Royal Institute of Chartered Surveyors (RICS) has issued a lukewarm response to the latest interest rate cut.

Rates are now at an all-time low and Deborah Walsh, RICS head of policy and communications, said: “The decision to lower interest rates today to just 1.5%, while welcome, is unlikely to provide any meaningful encouragement for banks to increase the availability of finance to either households or businesses in the south west.

“Indeed, the risk is that lenders are set to become even more restrictive over the coming months in the face of the worsening economic climate. With many first time-time buyers unable to find the finance to take an initial step onto the housing ladder and existing owner-occupiers needing to move similarly blighted, the time has come for the government to take direct action to restore an orderly property market.”