There have been various reports over the past week that the Bank of England could reduce rates down to 0.25% or even 0% in a bid to avoid financial collapse. The FTSE has actually recovered higher than the level it was last Thursday. The GBP/EUR exchange rate has stabilised for now, ending at 1.21 on Wednesday. There has been talk of house prices also falling to 18% over the next two years. I also read a report recently saying that rental increases slowed down in May. Personally I think 0% is a bit extreme but time will tell.

graph-line-up-and-down-64-1237007

The housing market is still strong

Fundamentally the housing market is still strong but this uncertainty will lead to short term fluctuations. For those brave enough there will be opportunities to potentially haggle that bit more for their next property but could prove expensive if prices really do come down or mortgage rates drop significantly if the Bank of England does drop its interest rate to 0%.