Period of stability 'welcome'

The National Association of Estate Agents has welcomed the Bank of England's decision to hold interest rates and said that a period of stability will help the housing market.

While it had been widely predicted, the bank's announcement that rates would not be increased yesterday will have been greeted with relief by all types of borrower, from first-time buyers to experienced buy-to-let investors.

Stewart Lilly, president of the NAEA, said that the Bank of England had made the right decision and urged it to maintain its position for the coming months.

"It will be beneficial to have this period of stability to help the market adjust to the changes that are taking place at present, not least the controversial introduction of home information packs," he said.

"We are pleased that a 'wait and see' strategy has been adopted by the monetary policy committee for the time being allowing consumers and the market a time to adjust and take stock. We urge the Bank of England to continue to hold interest rates for the foreseeable future."

The NAEA recently took a poll of its members which found that 71 per cent of estate agents thought the interest rate rises have had a negative effect on the housing market in their area.

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