9 April 2008
People are beginning to lose confidence in the housing market and this could be helped by a cut in interest rates, the National Association of Estate Agents (NAEA) has said.
Matters would be helped if the Bank of England trims the base rate of interest, Peter Bolton King at the organisation noted, something that could also help consumers with other loans.
A general feeling of "instability" is harming people in the housing sector, he commented, especially first-time buyers who wish to get on the property ladder.
While there are factors that the Bank must take into account such as high employment levels, the element of "confidence" must be considered, Mr Bolton King asserted.
But, because the rates paid between banks themselves are currently high, he remarked, a rate cut might not have a major impact.
Recent figures released by Experian suggested that a high number of homes in Bristol are now classed as sub-prime.
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