Agents hail cut in rates

Property agents have welcomed the cut in interest rates, claiming it will bring "renewed confidence to the market".

Bank of England Governor Mervyn King cut interest rates by a quarter point to five per cent earlier this month, which agents say will boost the pub market's fortunes.

Bob Whittle, a director at Fleurets, said: "This has to be good news. It will certainly give people more comfort."

He added that there had been "plenty of over-heating and lessees wanting unrealistic prices". "As long as people are realistic, they should be able to find a buyer," he said.

Paul Davey, managing director at Davey & Co, said it should help the market. He added: "The volume of enquiries has fallen but the quality of enquiries is still solid. There are a lot of committed sellers around, it is definitely still a seller's market.

"Banks are keen to lend to those that have the experience and the expertise, but for first-timers it's important to show they have done their homework."

Jeremy Hill of Christie + Co echoed the positive feeling. "The cut in interest rates will give renewed confidence to the market. The demand for high quality, well-located property is still there, and banks are willing to lend."

But he warned that banks were "adopting more stringent lending criteria."

Indeed at the time of the announcement there was a big question mark over whether pubs will see any benefit in terms of an upturn in trade, with many lending banks reluctant to pass on the rate cut to customers.

And Mat Oakley, head of commercial research at Savills, told The Daily Telegraph: "The interest rate cuts that we have already seen haven't helped commercial property, in the same way that they haven't helped the consumer side."