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Estate agents demand further rate cuts
19 November 2008 16:16
Additional cuts in the Bank of England's base lending rate are needed to revitalise the economy, according to British estate agents.
An investigation by the National Association of Estate Agents (NAEA) found that over half of its members believed the government was not doing enough to help the flagging housing market.
What's more, the association also revealed that many homeowners were cutting their asking prices in response to the low level of property buying activity.
Chris Brown, president of the NAEA, said that sellers are starting to face up to the reality that their homes are not worth as much as they were a year ago and are now coming to terms with the dangerous economic climate.
He said it was now the government and financial sector's turn to realise the extent of the economic damage, and respond with further cuts to the base rate and the abolition of stamp duty.
In a recent interview with the Times newspaper, the head of Tesco hinted that the supermarket chain was considering entering the mortgage market.
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