Estate Agents relieved over latest rate decision

The National Association of Estate Agents (NAEA) has expressed relief over the Bank of England’s decision today to maintain interest rates at 5.75%.

Following the 0.25 percentage point rise last month, the NAEA says that another increase in August could have been disastrous for many homeowners.

Peter Bolton King, Chief Executive at the NAEA, comments: “Having endured three interest rate rises already in 2007 homeowners are particularly vulnerable to increases at the moment. Many will be extremely relieved at the latest news.

“Following last month’s decision by the Monetary Policy Committee to increase rates we are pleased that it has not jumped in too early with another rise in August. It takes time for the market to react following an increase. We are only just seeing the effects of the July rise as the market appears to be cooling in many areas. Another increase at this point could have been particularly bad news for those markets that have already showed signs of slowing down.

“Going forward, we urge the MPC to err on the side of caution and maintain rates until the end of the year to allow consumers and the market time to adjust.”