Househunters looking to buy a house in central Scotland and elsewhere in the UK may be relieved by the interest rate cut decided upon by the Bank of England this week, it has been claimed.

The National Association of Estate Agents (NAEA) has commented on the monetary policy committee's decision to reduce the base interest rate to five per cent, stating that this may restore confidence in the housing market.

Consumer confidence in the struggling markets may only be built up with further action from mortgage lenders, the body added.

Peter Bolton King, chief executive of the NAEA, said: "Moving forward, it is now more critical than ever that mortgage lenders adopt a similar approach and lower mortgage rates in line with … [the] drop."

This follows recent calls from the organisation for people considering the housing market to remain upbeat despite the recent report from Halifax, which showed a decrease in UK house prices.

The Halifax House Price Index revealed that the Scottish market remained strong, with a 5.3 per cent increase compared to 2007, which may be welcome news to those wishing to buy a house in central Scotland.