The National Association of Estate Agents (NAEA) has welcomed the monetary policy committee''s decision to slash a further one per cent off the base rate.

However, the organisation has said the move will not make a difference if banks fail to "play fair" and pass on the rate cut to their customers.

The NAEA is calling on leading lenders to boost confidence in the market by reducing rates and ensuring the mortgage market recovers more quickly by renewing efforts to increase the amount of new lending.

Peter Bolton-King, chief executive of the NAEA, said: "Government and lenders must do more to encourage first-time buyers on to the property ladder in order to reverse the current downturn in the market."

He added that the NAEA looks forward to hearing how the government intends to assist first-time buyers.

In related news, the government''s estimate of the average price of a property is as much as £50,000 higher than the value put on houses by leading lenders, according to thisismoney.co.uk.

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