So the Bank of England almost stopped the property market in
its tracks right?

As some of our observant readers spotted
http://www.propertysecrets.net/directory/board.php?page=1&board_id=12&highlight=9377#9377
the Bank of England interest rate committee minutes
contained a stunner!

It turns out that 4 out of 9 of the committee members voted
to raise interest rates (4/9) in their October meeting and
it was only the deciding vote of the Governor that prevented
a rise.

However, this doesn't seem to have held back the property
market and is it increasingly likely that the rates will
rise at the next Bank of England meeting (around 7th
November).

So, if you are going to fix your finance, then you shouldn't
delay.

5 year fixed rate mortgages below 5.5 percent are still
available. See
http://www.buy-let-mortgage.co.uk/fixed_buy_let_mortgage.htm
for latest rates.

But what does this mean for the rest of us?

Well, we started out the year (2003) predicting (and hoping)
for a more stable housing market.

In 2002 property increased in value by an average of about
25 percent (down from a peak of 30 percent), and we were
looking for good steady growth of 10 percent in 2003.

A long time property expert recently confided in me that he
shivers when ever the property market grows at more than 10
per cent per annum!

Latest property price increase figures show annual increases
to end of September of about 18 per cent - a bit too high
for my liking - and too close to the boom (and potential
bust) of 25 to 30 percent level.

So, the 'shock' news that an interest rate increase is
likely in the short term (next 6 months) is welcome - it
will help to cool and calm down the market.

Great!

After all, we are looking to hold property long term - as
that's where we see the profits.

And, if that means that we get a slightly slower growth now,
well that's cool!

So, let's hope that the Bank of England manage to switch a
vote and put the rate up to 3.75 percent. It certainly
should create a few buying opportunities of sellers who
would suddenly be willing to listen to offers.

And, when nerves begin to settle in the Spring time and the
market returns to its sound fundamentals, then we'd expect
to see prices pick up strongly.

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