NAEA calls for interest rate reduction

The National Association of Estate Agents (NAEA) is calling on the Bank of England to reduce interest rates to 5% on Thursday.

Peter Bolton King, Chief Executive at the NAEA, comments: “There is an ongoing lack of confidence in the housing market and the Bank of England needs to act fast to stop it stalling.

“We are seeing people squeezed as a result of the credit crunch, as the banks expect bigger deposits and better credit ratings. In addition, nervous banks are keeping their interest rates well above the base rate. This means consumers, especially the vital first time buyers, are caught in a double trap of having to find a bigger deposit and fund higher payments against the backdrop of rising inflation.

“The situation is by no means dire but the result could be very different if the Bank of England does not act now.”