The National Association of Estate Agents (NAEA) has issued a resounding call for a further interest rate cut in November to help the ailing property market following a survey of its members.
The survey produced 1070 responses from estate agents across the country. Over the past few days members were asked a series of questions relating to the recent government bank bail-out. The results clearly demonstrate agents’ strong feelings on how more needs to be done for consumers and businesses, including a sharp interest rate cut.
One member commented: ‘I believe the bank bail-out had to be done, but it will take at least six months to see any improvements.’
A further question then asked agents ‘when would you expect to see property prices beginning to rise again in your area?’ 3% responded with ‘0-6 months’, 18% said ‘7-12 months’, 35% stated ‘13-18 months’ and 44% answered ‘18 months and over’. Finally, the NAEA asked members ‘Do you believe that the government should put into place further relief efforts to help stabilise the property market? A staggering 88% answered ‘yes’ whilst a meagre 12% said ‘no’.
The report says one agent stated: ‘The initiative to bail-out the banks must be matched with an equally focused and positive initiative to salvage the property sector. The housing market must be underpinned by a lower base rate (3.00%) linked to a proportionate standard variable mortgage rate.’
Other agents believe that more initiatives need to take place regarding Stamp Duty with the resolution of a stamp duty holiday still holding president.
Peter Bolton King, Chief Executive of the NAEA added: ‘A dramatic cut in interest rates next month would help bolster consumer confidence at a time where individuals’ self-assurance has taken a hit. We know that a positive housing market is essential for the overall economy. Reducing the rate will help send a clear signal to the market, encourage lenders to reduce their rates and allow fluidity of mortgages to be loosened giving the market and the thousands of house hunters out there the positive impetus they need.’