Mortgage market needs cut in interest rates

10 June 2005
SmartNewHomes has criticised the Bank of England for maintaining the base interest rate at 4.75 per cent.

The chief executive of the UK new homes website is calling for a decrease in the rate in order to increase consumer confidence and boost the economy.

"Having held interest rates for the previous nine months, the Bank of England has achieved its desired effect of stabilising rising house prices," said David Bexon.

"A decrease in the base rate will increase customer confidence and will be the catalyst to ensure that we see positive growth in house prices this year."

Mr Bexon also raised concerns that the housing market is danger of becoming completely stagnated and could eventually lead to a slump in the UK economy.

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