The National Association of Estate Agents (NAEA) has called for the Bank of England to cut the base rate of interest to breathe new life into the UK’s housing markets.
According to the association, such a step by the bank would restore confidence among consumers who are being impacted by rising inflation and stricter money lending conditions.
The cut in interest rates would likely be welcomed by people around the country who are struggling to become debt free and the NAEA is convinced that the move would be particularly good news for homeowners who have only recently made it on to the housing ladder.
Explaining the association’s position, its chief executive Peter Bolton King said: “We are seeing people squeezed as a result of the credit crunch.”
“Consumers are caught in a double trap of having to find a bigger deposit and fund higher payments against the backdrop of rising inflation,” he added.
The Bank of England will decide whether or not to reduce the base rate of interest this week and most economic observers are convinced that it will not be trimmed until later in the year.