THE message to lenders from estate agents in South Bucks following yesterday's quarter per cent drop in interest rates is pass it on quickly to borrowers.

Robert Bryant-Pearson, chief executive of Allied Surveyors commented: "This second rate cut (to 5.25 per cent), albeit delayed, is very welcome and will no doubt ease the pain of mortgage costs for many homeowners.

"But lenders must pass on the reduction swiftly and offer competitive deals to all borrowers."

Richard Worrall at Thompson Wilson, chairman of the Team network of estate agencies in the Thames Valley, advised anyone sitting on the fence waiting for prices to drop to get off their perch.

He said: "There are a lot of people out there who still believe prices will drop and they could be really disappointed. There could well be a further drop in interest rates before the summer. Those who are holding out hoping for a deal could miss the boat if they don't get in the market now."

JNP director David Pering was looking at possible future sites with a group of developers when the announcement was made.

He commented:"It's the best news. It will give people more confidence that the dip in the market has stopped. So long as vendors are sensible, properties are selling.

"The interest rate will get more buyers into the market but it will still be price sensitive."

Mike Ratcliffe, chief executive of Wolsey Securities, an independent finance specialist for UK housebuilders said: ""This gentle cut compared to the US Federal Reserve's gung ho slashing of rates last month by 1.25% demonstrates that the MPC is steering the UK economy through a steady course and is confident that the economy remains strong.

This in itself should give consumers confidence. However, it is vital that these cuts are then passed on by lenders to help reduce the financial squeeze being felt by borrowers."