The property sector is expected to receive a minor boost as a result of the Bank of England cutting interest rates to a record low of 0.25%.
This was in the context of the bank’s grim cut to its economic growth forecasts for 2017 from 2.3%, made in May, to 0.8%.
Andrew Burrell, head of forecasting at JLL, said: “It will be some time before the economic impact can be judged, but the announcement will help reassure investors and occupiers at a time of intense uncertainty.”
The bank also boosted its quantitative easing programme by £60bn and launched the Term Funding Scheme, which will give banks £100bn to issue low-interest loans.
Ivan Harkins, a director at JC Rathbone, said the measures could help lessen the impact of dampened growth on the property industry.
He said: “It links into the general effect of quantitative easing and low rates. It is generally good for assets, so in general, it will be good for the real estate market.”
Click here to listen to Adam Challis discuss the rate decision
• To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette
