Scotsman Money: Housing emergency and hopes for a summer interest rate cut

The Scottish Government has declared a national ‘housing emergency’ and all eyes are now on what meaningful action will be taken to address the problem of many people not being able to afford a home that meets their needs.

But this issue is not something that will be solved overnight and it takes time to build new houses that are affordable for more of the population.

What current home owners and prospective home buyers will be hoping for in the near term is a cut in interest rates, and a subsequent reduction in mortgage payments to help ease cost of living pressures.

There was disappointment this month when the Bank of England decided to keep the interest rate at 5.35 per cent. While this might not have been a major surprise, many will be hoping for a cut this summer.

Sarah Coles, head of personal finance Hargreaves Lansdown: "There were indications that rate cuts may not be as distant as some mortgage holders were fearing. The Bank played down inflationary risks, and drew out the growing signs of weaknesses in the economy – both of which point to the likelihood of a cut this summer. It remains to be seen whether this brings market expectations forward. If so, it could mean better news in the mortgage market.”