Peter Bolton King, chief executive of the NAEA, commented: "We believe that a reduction in interest rates this week will provide a pivotal way for the government to help revitalise the current market place. Indeed, a cut in rates would play a major part in helping to stimulate consumer confidence at a time where individuals’ self-assurance has taken a heavy hit.
"Lending is not getting any easier and if anything the mortgage rates are getting tighter, causing the housing market to suffer. By decreasing rates it will hopefully act as a catalyst to encourage lenders to reduce their rates and pass them onto consumers allowing the current mortgage shackles to be loosened somewhat, giving house hunters room to breathe.
"A positive housing market is essential for the overall economy. There remain strong economic factors in the country like high employment but confidence is a huge issue and only a significant move will restore that confidence and convince lenders and public alike - the Bank of England needs to reduce interest rates and take action fast encouraging buyers back into the housing market."
Most experts believe rates will stay the same this month.
