The National Association of Estate Agents (NAEA) welcomed the Bank of England’s forecast that two interest rate cuts will be needed by next summer to help relieve the current economic slowdown.

Peter Bolton King, chief executive of the NAEA, said: “I’m delighted with the announcement made by the Bank of England. It is really encouraging to see that it has recognised the effects that the past interest rate rises have had on the market and indeed consumer confidence.

“The housing market has cooled and the past 12 months have left consumers looking for reassurance. A decrease in interest rates in 2008 will give consumers confidence and lead to a pick up in the housing market.”