NAEA calls for interest rate cuts

Posted: 10 Jul 2008 13:15:30 GMT

The National Association of Estate Agents (NAEA) has called for the Bank of England (BoE) to keep interest rates down and increase funding for the mortgage market.

The National Association of Estate Agents (NAEA) has called for the Bank of England (BoE) to keep interest rates down and increase funding for the mortgage market.

This request comes as the Monetary Policy Committee has announced today (July 10th) that interest rates will remain the same.

Peter Bolton King, chief executive of the NAEA, urged the BoE to help lenders that were being forced to tighten their lending criteria under tough economic conditions.

Mr King said the BoE needed to "increase funding to lenders in order to create more liquidity in the markets and control the credit situation. Lending is not getting any easier and if anything the mortgage rates are getting tighter, causing the housing market to suffer".

By lowering interest rates and increasing funding, the NAEA say consumer confidence would increase and that would in turn "encourage buyers back into the market".

Cluttons, an independent firm of chartered surveyors, has also called for the BoE to cut interest rates.

Richard Cotton, senior partner at Cluttons, said: "The property industry needs to witness positive action from the Bank of England with a cut in rates tomorrow."

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