House Builders Federation says action is needed to prevent housing downturn damaging wider economy

The House Builders Federation has called for a 0.5 % cut in interest rates ahead of tomorrow’s decision by the Bank of England.

It said the move is necessary to prevent the housing market downturn impacting on the wider economy.

The call also comes after it was revealed last week that its weekly statistics for reservations at the end of April showed a two-thirds decline on the same period last year.

Stewart Baseley, executive chairman of HBF, said: “We are calling for this move now, as we believe more immediate action is needed to reduce the impact of a potential housing market downturn on the wider economy and on the government’s ambitious housing targets.”