Today's quarter per cent interest rate cut has been welcomed by estate agents. They regard it as a move in the right direction.

Richard Worrall, director of Thompson Wilson and chairman of the Thames Valley group of agents in the Team network said the reduction to 5.5 per cent would give the house market "a bit of a boost."

He commented "Any rate cut is welcome but I don't think it will make the banks' lending criteria change overnight. They are being very cautious with their lending. The last couple of months have been pretty tough."

Trevor Hines, south east regional director of the Royal Institution of Chartered Surveyors said: "Today's rate cut will provide some much needed relief for the 1.4 million homeowners who are due to refinance their mortgages over the next year or so. We expect the Bank to follow up today's cut with a further reduction early in the new year."