The chief executive of Haart estate agents has welcomed the Bank of England''s decision to cut the base rate last week but has said the move should have come earlier.

Paul Smith commented that while the firm is "relieved" that the rate has been cut from 5.75 per cent to 5.5 per cent, the decision should have been taken before now in order "to pre-empt current problems".

"As the economy is in a state of disarray and the housing market has cooled down dramatically, it would have been a serious mistake to hold the rates again, denying the market a chance to recover," he explained.

Mr Smith added that the "drop will start to work towards correcting consumer affordability constraints and averting a complete downturn in the economy".

Agents across the country have welcomed the cut, with Nigel Jones, director of John Francis estate agents in Wales, telling the Western Mail that it should give buyers a valuable confidence boost to encourage them to snap up a property.

"I don''t think the fact interest rates have fallen will help the market in itself, it is the confidence this could create among buyers and in those looking to get a foot onto the housing ladder," the newspaper quoted him as saying.