The monthly meeting of the Bank of England Monetary Policy Committee will take place later in the week, once again with the issues of interest rate and quantitative easing as the focal points. Members of the MPC will discuss the possible impact the conclusion of the general election will have on the UK housing market. Many house owners and potential house buyers are riding the fence currently and not making any major decisions which could turn negative due to the results of the impending election. The short term and long term future of the housing market is at stake.

Many are waiting anxiously to see the results of the next MPC meeting and for good reason. If the committee decides to wait on a rise in interest rates, which is expected by many, there could be a rise in activity on top of the natural spike which is expected at the conclusion of the election and the beginning of the natural yearly buying season. Regardless of the decision, lending institutions will no longer have to compete at such a high level due to the increase in demand for lending products like original mortgage loans and remortgage loans.

The committee is under great pressure to make the appropriate choices during the meeting, as the UK housing market is sitting idle, almost looking for direction. There has been serious talk about a housing bubble in the past few months, but that talk has subsided due to falling house prices in and around the capital city of London.

Many expect the base rate to continue to stay at the low level of 0.5% for several months.