Call for interest rate cuts to help housing market

Posted: 05 Jun 2008 10:20:17 GMT

An industry body has called for the government to ease the pressure on the unstable housing market just ahead of today's interest rate decision.

An industry body has called for the government to ease the pressure on the unstable housing market just ahead of today's interest rate decision.

The National Association of Estate Agents (NAEA) yesterday (June 4th) called for temporary tax relief and a reduction in stamp duty to boost consumer confidence and bolster the market.

Peter Bolton King, chief executive of the NAEA, expressed the importance of the housing market in maintaining a healthy economy.

Mr Bolton King said: "The NAEA is calling on the chancellor and prime minister to consider other options to give people a break such as a stamp duty holiday for first time buyers and temporary tax relief on the mortgage interest of people's primary residence."

Interest cuts are not being passed on to customers, according to Mr King, and the government therefore needs to take further action.

Last night, the Scottish Building Federation (SBF) and the Home Builders' Federation (HBF) called for the monetary policy committee to cut interest rates to 4.5 per cent.

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