The National Association of Estate Agents (NAEA) has issued a warning to the Bank of England (BOE) not to raise interest rates later this month (November).

The Banks Monetary Policy Committee is expected to raise rates by a quarter per cent to 5%.
Peter Bolton King, chief executive of the NAEA, said: “The residential housing market on the whole has performed well in 2006, and it is clear that activity has improved from the downturn seen in the market during 2005. However I would ask the Bank of England to remember that the market differs significantly throughout the UK, with some areas of the country seeing a slower housing market whilst London, the South East and East Anglia are performing particularly well. A further rate rise could have a detrimental effect on the areas that are already looking slightly flat.

“Both the NAEA September housing market report and the Council of Mortgage Lenders September figures showed a slight slowdown in the market since the August rate increase. The market, it appears was buoyant enough to absorb the rise without too drastic an effect, and from all reports the market is still in good shape. However their has to be doubt as to whether a further rate rise will be absorbed with the same confidence, I urge the MPC to consider this carefully before they cast their vote”