First time buyers could be hit by another interest rate rise

A survey conducted by The NAEA revealed that a significant 40% of their members noticed a downturn in activity in the residential housing market as a direct response to the January interest rate rise. The NAEA is advising the Bank of England against increasing rates further in April.

Peter Bolton King said: I urge the Monetary Policy Committee (MPC) to show caution when casting their votes on interest rates this Thursday. There remain vast regional differences across the UK in the housing market. It is imperative that rates remain level if we are to avoid the danger of slowing the market further in some areas.

Although rates are in fact historically low, for those who have bought property within the last eighteen months, the increases will have been significant. A further rate increase will do nothing to help those already struggling with the mortgage repayments on their first homes and will act as a further affordability barrier to the fragile first time buyer sector of the market.

About

---

The National Association of Estate Agents (NAEA) is the UK's leading professional body for estate agency personnel, representing the interests of approximately 10,000 members who practice across all aspects of property services both in the UK and overseas. These include residential and commercial sales and lettings, property management, business transfer and auctioneering.

The National Association of Estate Agents is dedicated to the goal of professionalism within high street estate agency. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service in both sales and lettings. Each NAEA member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Association.