The housing market is in desperate need of an interest rate cut to restore consumer confidence.

That is the view of the National Association of Estate Agents (NAEA), which this morning stepped up the pressure on the Bank of England.

The bank's rate-setting monetary policy committee (MPC) meets again next month to decide on its next move, with the slowing economy and rising inflation competing for its attentions.

"It is disappointing to see that the percentage of first time buyers took a drop this month however, we are hopeful that this sector of the market will recover and continue to grow as prices reflect the prevailing market conditions," NAEA president Stewart Lilley commented, following publication of the most recent market data.

"The market is much more favourable to this target market."

"We continue to call on the Bank of England to lower interest rates to help prevent the economy slumping and to help bring back a renewed sense of optimism for the consumers," he added.

With the housing market slowing and home loans becoming more expensive, homeowners are coming under increasing financial pressure.

Household bills are also rising, with energy and food seeing sharp rises, while last summer's floods are likely to push up the cost of home insurance premiums.

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