The Bank of England voted to hold rates, showing they are not as concerned as the public with UK home prices dropping. The London market only accounts for one-fourth of the GDP, and recent government changes will considerably benefit markets outside of London, notes Simon French, chief economist at Panmure Gordon.
- The Bank of England voted 9-0 to hold rates
- The general public tends over-focus on the housing trends in the London market
- The stamp duty cuts and help-to-buy program will have greater effect outside of London
- An influx of foreign buyers into the UK market has helped plug the current account deficit