INTEREST rate falls by Bank of England Governor Eddie George and his monetary policy team are helping boost demand for businesses in Lancashire, according to agents.

Julian Troup, director of Christie and Co's Manchester office, said there was a marked increase in interest from people looking to buy their own business.

"There is a 'double edged sword effect', where not only is it far cheaper to borrow money to go out and buy your own business, but anyone who has saved money is now getting a modest return, particularly considering the very attractive returns now available on hotel, pub and restaurant sales," he said.

Another factor helping to increase the number of buyers in the market place is the migration of buyers from the south of the country, where prices are higher and returns less attractive.

As experienced in the late 1980s, there is now a trend for entrepreneurs from the south to sell up in favour of buying a business in the north.

"Our experiences suggest that not only are sales taking place, but also some very solid prices are being paid."

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