Quantitative easing 'would not help the property market'

A further extension of the Bank of England's quantitative easing (QE) scheme would risk Britain's appeal as a plc, one property expert has asserted.

Paul Holmes, chief executive of Firstrung, which specialises in highlighting financial and buying solutions from traditional sources, said that he does not feel that quantitative easing is the answer to the problem of restrained lending.

His comments follow yesterday's release of a report by Countrywide Mortgage Services, which revealed that lower interest mortgages remain unavailable to the majority of homeowners, with the most popular mortgage costing a rate of 6.49 per cent.

The risk of a downgrade in the nation's credit rating as a result of QE would create "real problems" in terms of UK competitiveness, Mr Holmes stated.

This news comes after the Bank of England yesterday announced its decision to hold the official base rate at 0.5 per cent and voted not to extend its £175 billion investment in QE.