Bovis calls for rate cut to stimulate prices

The Bank of England need to bring down interest rates in order to keep the housing market moving, a spokesperson for a leading house builder has said.

Malcolm Harris, chief executive of Bovis, suggested that full-year house sales and prices would be lower than last year and action was needed from the Bank.

His comments came as the company announced its profits would be lower than expected due to the workd market turmoil

He told the Financial Times: "UK rates are the highest in the western world.

"There is capacity in the economy that is not inflationary and a timely reduction in interest rates would increase confidence."

Average house prices would slip by about three per cent, the company predicted.

The Guardian reported that Bovis is not the only house builder that is feeling the effects of market uncertainty and failing consumer confidence..

Autum, it said, is normally the second strongest time of year for sales, after spring.



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