NAEA pleads for rate cut

The National Association of Estate Agents (NAEA) has urged the Bank of England's monetary policy committee (MPC) to cut the base rate tomorrow.

NAEA chief executive Peter Bolton King said: "We believe that a reduction in interest rates this week will provide a pivotal way for the government to help revitalise the current market place."

He added that a "positive" property market would be a major help in ensuring the health of the wider UK economy.

Such a move could help bring down the cost of mortgages, but it is unlikely to occur, according to most economists.

Nationwide said this week there was only a one in five chance of a reduction.

If the predictions that the base rate will stay put are correct, those seeking to use the self build method to get on the ladder may find this a much more affordable way to act than taking on costly mortgages.