Agents say cut will kick-start house market

ESTATE agents today predicted the historic base rate cut to three per cent will kick-start buying even if some mortgage lenders hold back from passing on the full drop to borrowers.

Although most said it was too early to see a marked impact on the London housing market, some thought there would be a telltale rise in property viewings this weekend.

Ian Dickson, director of Winkworth's Hammersmith branch, said: "It's incredibly early but the office has seemed noticeably busier this morning.

"We've had a couple of extra bookings this weekend as well. It's not an avalanche, but I didn't expect that."

Ed Mead, of Douglas & Gordon, said: "Most buyers have become used to interest rate cuts not necessarily leading to interest rate cuts and that certainly seems to be the case so far this time.

"But such a huge cut in the base rate will nevertheless give people a boost and make things feel more affordable generally. It's a good fillip leading up to Christmas."

Peter Rollings, managing director of west and central London agent Marsh & Parsons was also optimistic. He said the huge fall in rates was "a pretty good reason to get back in the market".

Mr Rollings said he had emailed all 3,780 buyers registered with the firm, urging them to make their move before prices start to go up again.