Agents call for further rate cut for UK real estate market

November 20, 2008 by OPPE News

More must be done by the government to effectively boost the UK real estate market, property professionals have claimed.

The National Association of Estate Agents (NAEA) said a survey showed more than half of estate agents have “no confidence” in current government policies.

They called for a total suspension of stamp duty and a further cut in interest rates to help kick start the housing market.

Sellers have already started to cut the asking prices of homes for sale, the research also showed.

NAEA president Chris Brown said:

“Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago.

“They are ripping up last year’s price tags and beginning to come to terms with the new economic reality.

“That is a difficult thing to do - but the silver lining is that the market is now more transparent for buyers.”

He also said prices are now becoming “realistic” which could provide a much needed boost and spark sales.

Earlier this month The Bank of England cut interest rates by 1.5 per cent in a shock reduction.

In September the government also unveiled a 12-month holiday on stamp duty property tax, but only for homes worth up to £175,000.