Homebuilders 'wanted bigger cut'

The Bank of England today announced an unprecedented coordinated interest rate cut of 0.5 per cent, but some homebuilders had wanted a larger decrease for the UK.

Earlier today, the Home Builders Federation (HBF) had called for a full one per cent cut in interest rates to boost both the housing market and the wider economy.

It said it had called for a reduction in the base rate by half a per cent as early as May and has also warned of the risks posed by the ongoing housing market downturn.

Stewart Baseley, executive chairman of HBF, said: "The worsening state of the economy means that any lingering concerns about inflation are far outweighed by the need to boost the housing market, so critical to the health of the wider economy."

He added the federation welcomed the moves announced yesterday to bring increased stability to the UK banking system to get financial institutions lending again.

The basic rate of interest in the UK is now 4.5 per cent after the first emergency cut since the aftermath of the terror attacks in the US on September 11th 2001