Given a tough housing market and slowing prices, consumer confidence was thrown into a downward spiral the moment the 'credit crunch' hit.
"The Bank of England has a key role to play in helping boost confidence by reducing interest rates," said Mike Ratcliffe. "The Government also needs to play its part and ensure more land is released for homes and that the new planning bill is effective in speeding up planning applications."
He placed emphasis on the fact that the lending market also has a key role to play in reassuring nervous customers "that lending is still taking place."
Ratcliffe added: “I believe the market fundamentals are strong and with buyer confidence re-established, the more pessimistic predictions of a real term drop in prices are unlikely to be realised. Buyers will be drawn into the new homes market, attracted by some great offers in the form of developer incentives"
