News on property investment in the south of France:

October 4, 2007

As predicted, the Bank of England has decided to keep UK interest rates on hold at 5.75 per cent for October 2007.

According to economists, the Bank is adopting a "wait-and-see" policy on rates until a clearer picture emerges of the effects of the recent global credit squeeze.

The Bank also kept rates on hold in September 2007 - but that was before the Northern Rock crisis came to light (for those not in the know, the Newcastle-based lender had to request emergency funds from the Bank of England following a downturn in the global credit market).

A cut in interest rates would counter the slight economic slowdown predicted in the UK in 2008, and would have helped UK home owners who have been struggling with twelve months of rising mortgage costs in 2007.

So it’s not even a case of “Plus ça change, plus c’est la meme chose” – because there’s been no change.

Meanwhile, new research* shows that 37 per cent (more than a third) of Brits questioned are considering the possibility of a move overseas, as a direct result of the current economic climate in the UK. 

This figure rises among mortgage payers, with four out of ten considering selling up and relocating abroad, if it meant they could buy a property outright and live mortgage-free. 

One in ten (11 per cent) of respondents said they were struggling to meet mortgage repayments after recent rate rises, and only 28 per cent said they were happy with the UK’s present economic climate and would not move abroad.

*Research undertaken between 29th – 31st August 2007 by YouGov plc.  The survey was carried out online. Total sample size was 2,154 adults – 928 of which are mortgage holders. The figures have been weighted and are representative of all GB adults (aged 18+). 37 per cent of a nationally representative panel said they would consider moving abroad as a result of current economic climate condition in Great Britain. 37 per cent of Great British population = 44,200,000 x 0.37 = 16,354,000