The Bank of England has reduced its base rate to 0.5% today and is increasing money supply in the on-going effort to restart the economy. 

BBR is the lowest for many a year and it is hoped the lenders will pass on the benefit to borrowers.  Halifax, one of the major property index composers, says although house prices for the three months to Feb '09 were down over the previous three month marker, there are signs of stabalisation.  

Martin Ellis, economist at Halifax, said, "The average UK house price declined by 2.3% in February.  This monthly decrease more than offsetting January's 2.0% increase ..."   An average house price is now c. £160,000 down in value year-on-year by 17.7%. Our prediction is that we shall see a major corner to recovery turned during the 2nd/3rd quarter of '09. 

Though we may not see the dizzy days of 10%pa property growth for some time nevertheless property has the reputation of being a resilient medium to long term capital and income investment.  

Do call if you want to crunch numbers to see if you will be better off will another mortgage type or provider.

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