NAEA says rate rise could have detrimental effect

Following the Bank of England’s decision to raise interest rates from 4.75% to 5% today, the National Association of Estate Agents believes that it could be a rise too far for a significant number of areas in the UK where the housing market is under performing.

Peter Bolton King, chief executive of the NAEA, says: The national picture for the residential property market appears to be extremely strong and buoyant.

There are, however, vast regional differences with some areas significantly out performing others.

The high prices and high pace of activity that is being reported particularly in the South East is not reflective of all areas, with some agents reporting a relatively flat market in their respective regions.

This further rate rise could have a detrimental effect on these areas.