Propertymark is the latest trade body to call on the Bank of England to cut interest rates to boost demand for property.

It sees lower rates as key to increasing affordability levels and consumer confidence, particularly among first-time buyers, as well as ease the financial strains on homeowners in general.  

Meanwhile, three major housebuilders have this week called for Jeremy Hunt to address stamp duty on property purchases in the Spring Budget to ‘unlock’ the UK’s housing supply and boost the economy.

Jennie Daly, head of Taylor Wimpey, told The Mail on Sunday that there was a ‘real case’ for reducing the levy on lower-priced properties and for sellers over the age of 60 who were looking to downsize.

Her comments were echoed by the chief executives of Barratt Developments and The Berkeley Group.

Pressure is growing on the government to reduce stamp duty comes after the housing market has been hit by surging interest rates which have pushed up mortgage repayments and rents at a time when household budgets have been squeezed by the cost of living crisis.

Daly said: “House moves drive the economy. Mobility is fundamentally important for a healthy economy.

“When that is made harder because there is a tax such as stamp duty or a lack of availability of homes, then you start to constrain the economic options of the individual and the economy. We have to look at the dampening effect that stamp duty has.”

Rob Perrins, head of Berkeley Group, said stamp duty cuts “would help with consumer demand” and encourage more people to move.

David Thomas, chief executive of Barratt Developments, said the chancellor should use next month’s Budget to “support young families to get a foot on the ladder” as well as to “incentivise downsizing” to boost housing sales and make “more efficient” use of existing stock.