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NAEA calls for rate cut

Interest rates must be reduced by the Bank of England this week, the National Association of Estate Agents (NAEA) said today.

The body said that the current housing market slowdown in the UK necessitates a reduction.

Reducing the Bank rate generally provides an economic stimulus, as it makes loan repayments cheaper and encourages consumer spending.

Chief executive of NAEA, Peter Bolton King, said: "The housing market is in a tricky situation, people are losing confidence because they are unable to secure mortgages - especially first time buyers, who are also being scared off by the feeling of instability.

"There remain strong economic factors in the country like high employment but confidence is a huge issue and only a significant move will restore that confidence and convince lenders and public alike."

He added: "The Bank of England needs to reduce interest rates and take action fast."

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