The National Association of Estate Agents has welcomed yesterday''s 0.25 per cent interest rate cut.

It is hoped that the move by the Bank of England will increase confidence in the property market after months of bad press.

Peter Bolton King, chief executive at the National Association of Estate Agents, said: "There is a serious lack of confidence in the market at the moment and I sincerely hope that the latest interest rate cut will help."

He added: "Doom and gloom mongers have been working hard recently to spread their word about problems in the market.

"The truth is, though, that the situation is not nearly as dire as some would have us believe. Our agents on the ground are reporting steady local markets in a large number of areas."

Lee Watts, managing director of Kinleigh Folkard & Hayward, agreed with Mr King, saying that the cut was "great news" and a "step in the right direction for consumers".