Mum and Dad have become the last lenders standing

Following the Bank of England Monetary Policy Committee's decision on interest rates, Peter Bolton King, Chief Executive of the NAEA, said: "Interest rates are becoming a distraction for consumers and business alike. A cut does not help house hunters if major lenders do not pass it on - it simply increases the pain for savers.

"The reality for many first time buyers in Britain today is that the only bank that will help with a deposit is the Bank of Mum and Dad. The NAEA knows that there is a huge demand for property out there and that potential first time buyers are exploring the market in larger numbers than we have seen for months.

"However, that will not translate into sales and bring the confidence needed to get the market moving again, when the only people willing to give a foot up onto the housing ladder are parents."