Banks must 'pass on interest rate cuts'
Friday, 7th November 2008

The National Association of Estate Agents (NAEA) has called on high street banks to pass on the cut in interest rates to their customers.

It said that after the cut of 1.5 per cent in interest rates - taking the figure down to three per cent overall - banks now have to respond and allow their patrons to benefit.

A response cut in rates from the banks would also cut down on the number of repossessions, it added.

"This interest rates reduction, coupled with a clear move from the lenders, would send a strong and positive signal to house-hunters and owners everywhere that may result in improved consumer confidence," a spokesperson from the NAEA said.

It also said that people buying property in the UK would also benefit, particularly families looking to move house.

Last month, the NAEA congratulated London mayor Boris Johnson for removing the 50 per cent affordable housing target in the capital, adding that this was a more realistic approach to the current property market.