Rate cuts 'will boost property market' Published: 06/08/2008

The head of the National Association of Estate Agents has urged the Bank of England to lower interest rates to boost the property market.

Peter Bolton King, chief executive of the association, said consumer confidence will increase if the monetary policy committee either cuts rates or keeps them the same when it meets on Thursday this week.

The Bank of England's rate-setting committee has kept rates at five per cent for the past four months and is expected to do so again.

But Mr King urged the Bank to cut rates in order to spark the property market, which is currently going through a difficult period.

He said: "We believe that a reduction in interest rates this week will provide a pivotal way for the government to help revitalise the current market place.

"Indeed, a cut in rates would play a major part in helping to stimulate consumer confidence at a time where individuals' self-assurance has taken a heavy hit."

Mr King said the property market is suffering as those looking for property to buy are facing "tighter" mortgage rates.

He added that cutting rates would be a catalyst to encourage lenders to also reduce their rates and bring back consumer confidence.

He said: "A positive housing market is essential for the overall economy. The Bank of England needs to reduce interest rates and take action fast encouraging buyers back into the housing market."

Search for sold prices in your area  © Copyright.