The Bank of England must cut the base rate of interest if it wants to help people avoid financial difficulties and boost the housing market.
[UKPRwire, Wed Apr 23 2008] That is according to the National Association of Estate Agents (NAEA), which said that the Bank needs to "act fast".
Many homeowners are struggling with financial difficulties as mortgage lenders increase their rates.
Peter Bolton King, chief executive of the NAEA, said that the Bank of England can help by reducing rates soon.
"The housing market is in a tricky situation, people are losing confidence because they are unable to secure mortgages - especially first time buyers, who are also being scared off by the feeling of instability," he commented.
"There remain strong economic factors in the country like high employment but confidence is a huge issue and only a significant move will restore that confidence and convince lenders and public alike - the Bank of England needs to reduce interest rates and take action fast," added Mr Bolton King.
Julian King of the UK's leading fast property buying organisation, National Homebuyers adds, "Even if the base rate is cut it is likely that many lenders will not pass on the full reduction.
"The Treasury must act to ensure that base rate cuts are passed on. But this will not solve many people's problems.
"Homeowners in a difficult financial situation must act quickly to ensure they avoid repossession or getting further into debt".
Mr King is a director of the UK's leading fast home buyer, National Homebuyers. The company is provides repossession and mortgage rescue solutions such as Sell and Rent Back where the homeowner can sell property quickly to release cash, but remain living in their home.
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