The Business Exchange Bath & Somerset Issue 9: Autumn 2018 | Page 15

For more info:
www.andrewsonline.co.uk
David Westgate John Taylor
GROUP CHIEF EXECUTIVE
Andrews Property Group SOUTHERN REGIONAL MANAGING PARTNER
RSM
“It is very unlikely to cause any shock waves
in the property market. We mustn’t forget
that rates are still at a record low and have
been for 10 years. Indeed, we should remind
ourselves that back in 2008, before the
economic dip, the base rate was around 5%!
“In terms of property values, we are
already seeing a natural adjustment in
pricing across many of our operating
areas and this is quite simply because
property costs are related to affordability.
Confidence continues to underpin the
property market and consumers should,
therefore, still view a property purchase as
a medium to long term investment.” “The Bank of England was itching to raise rates,
despite a reasonable argument to hold off just a
little longer. The decision the BoE has taken was
understandable. The odds on a recession must rise
over time, and when it comes, fiscal authorities want
to be ready. They want the ability to stimulate and to do
that they need to get rates to a level they can cut from.
“Conversely though, this was a close-run call. We
face a perfect storm of uncertainty – a combination
of a government riven by policy differences, the rising
risk of a hard Brexit, subdued inflation, sluggish wage
growth and the high street in turmoil.
“Only hindsight will show whether the move is
premature as we head into what will be a turbulent
quarter politically.”
For more info:
www.rsmuk.com
“In terms of property values,
we are already seeing a
natural adjustment”
“We face a perfect storm
of uncertainty”
Anna Bowes
CO-FOUNDER OF INDEPENDENT SAVINGS ADVICE SITE
Savings Champion
For more info:
www.savingschampion.co.uk
“A rise in the Bank of England base rate
has been a long time coming for savers, as
the sacrificial lambs of a decade long low
interest rate environment. However, savers
shouldn’t get too excited too soon as the link
between the base rate and savings rates has
become all but severed in recent years. In
fact, following the last rise in the base rate
in November 2017 50% of personal savings
accounts didn’t rise at all and average Easy
Access account rates are now just 0.09%
higher than they were before the rise.
“For businesses the picture is even more
stark, as just 45% of business easy access
accounts increased – and of those that did
increase, some were by a pitifully small
amount.
“If you are holding money in cash be
it your own personal account or for your
business, it’s imperative to keep your
money on the move, especially if you are
languishing with a high street bank. The
great news is that rates for best buy savings
accounts have increased by as much as
50% over the last couple of years as a wave
of new providers fight for savers’ cash and
are willing to pay a competitive return for it.
Just waiting for the base rate rise to better
your returns is likely to leave you sorely
disappointed and far worse off.”
“It’s imperative to keep your
money on the move”
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THE BUSINESS EXCHANGE 2018
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