The National Association of Estate Agents (NAEA) has signed an agreement to merge with the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC).

The initiative comes after the two organisations worked together in 2005 to introduce a new International Code of Practice in the international property market, which has since been adopted by 40,000 estate agents across Europe.

Under the terms of the merger, the new body is to be called 'NAEA International incorporating FOPDAC'.

Commenting on the development, Peter Bolton King, chief executive of the NAEA, said: "This is an important occasion in the history of both organisations as the NAEA and FOPDAC are brought together.

"We have no doubt that this will prove a highly beneficial union for both consumers and the industry over the years to come."

The move comes soon after the NAEA urged the Bank of England to give serious consideration to any future interest rate rises, claiming that any increases would have a detrimental effect on the UK property market.