The Bank of England has been urged to "take action fast" to encourage greater lending and borrowing activity within the UK’s housing sector.
According to the National Association of Estate Agents (NAEA), confidence among would-be home buyers around the country has been falling in recent weeks.
With this in mind, the association is keen to see the bank’s monetary policy committee vote to cut interest rates to five per cent when they meet later this week.
There are some positive indicators on the economy but the housing sector is suffering as UK consumers struggle to deal with their money problems and debt management issues, the NAEA has suggested.
Peter Bolton King, the association’s chief executive, said: "The Bank of England needs to reduce interest rates and take action fast."
"It is also imperative that the lenders do likewise as the London interbank offered rate is equally critical to lending and restoring confidence."
A report from the Fair Investment Company recently indicated that debt problems have led an increasing number of British homeowners to seek out long-term fixed-rate mortgage deals.