Base Rate Held at 5.25%

March 6, 2008 - PRLog -- Reaction to MPC Announcement and Buy-to-Let Commentary

As widely predicted, the Monetary Policy Committee (MPC) today announced that the base rate will remain at 5.25% during March.

Neil Young, CEO of Property Portfolio Managers, Young Group, comments; “The MPC is engaged in a delicate balancing act between keeping the base rate at an appropriate level for the current economic conditions and ensuring that future inflation is held in check.”

Inflationary Pressure:
“Latest data from the Chartered Institute of Purchasing and Supply (Cips) reveals that demand in the economy is slowing, but not as sharply as previously expected.  The MPC will want to see a further slowdown to ensure that the inflationary spike that they have warned could hit 3% later this year does not linger, so I expect the base rate to remain static for the short term.”

“Inflation is the principal focus of the MPC, so today’s announcement that they have voted to hold the base rate at 5.25% comes as no real surprise.”

Buy-to-Let investment market:
“Today’s announcement by the MPC that the base rate will remain at 5.25% during March should have negligible effect on the buy-to-let sector.  Investors who approach property investment in the same way that they would any other asset class will be looking at the overall trend in interest rates rather than short term fluctuations.”

Mortgage lending:
“The effect of last year’s credit crunch is filtering down to borrowers and mortgage funding is becoming more difficult to come by as lenders, rightly, tighten their lending criteria and increase the due diligence process on mortgage applications.  But, a purchaser with a good credit history and a realistically priced property will still find good mortgage products from lenders.

“Although the current conditions make it more arduous and time consuming for those seeking funds for property purchases, the shake out in the mortgage market will result in a stronger and more robust market.  We are already seeing sense coming back to the market.”

-ends-

Neil Young, CEO - Young Group, is available for interview


Press Contact:
Michael Oakes      
t: +44 (0)845 356 1000
Communications Manager – Young Group  
e: moakes@youngggroup.co.uk


Notes for Editors:

About Young Group
Young Group specialises in providing Property Portfolio Management services to private investors, offering the best off-plan direct investment opportunities in London, as well as access to indirect, development fund investment opportunities through its development arm, Young Property.  Young Group manages the entire investment process.  For direct investments this spans from sourcing the opportunities through to financing, furnishing and letting.  Young Group owns all the property that it sells, and also retains a number of units in each development for its own portfolio. As the principal in every transaction, Young Group does not realise any profits until completion and has transacted in excess of 1,700 apartments, with a retail value of more than £700 million. The majority of our units are bought by clients for their private portfolios.  The Group's portfolio managers liaise with the Young Lettings (www.younglettings.co.uk) team in advance of completion to let investors' apartments to quality tenants, often through corporate lets.

Young Group clients have access to all available finance products via Young Group's FSA regulated mortgage desk, Young Finance (www.youngfinance.co.uk).  Young Finance is an appointed representative of Thinc Assured Network, one of the UK's largest financial advisory firms and is not tied to any group of lenders, nor does it charge commission or transaction fees.

•   Young Group's iconic Canary Wharf development, The Landmark (www.TheLandmarkE14.com), has been awarded two Daily Mail Property Awards in the categories of best high rise development and best high rise architecture.  The Landmark East Tower rises to a height of 459 ft, making it one of the tallest residential properties in Europe.

•   Young Group’s COO, Sylvana Young, has just been named Bardford and Bingley’s Property Woman of the Year, 2008 for London.  The overall national winner will be announced on 13 March 2008.

Young Group supports NORWOOD and CHILDREN with LEUKAEMIA, two charities particularly close to our heart, donating £50 per property exchange and providing additional support throughout the year.  Visit www.younggroup.co.uk to learn more.


For further information, contact:
Michael Oakes      
+44 (0)845 356 1000
Communications Manager - Young Group  
moakes@younggroup.co.uk

Website: www.younggroup.co.uk