The Bank of England's monetary policy committee (MPC) voted to keep interest rates at 5.25 per cent yesterday despite many in the housing market expecting yet another rise.
Inflation, measured by the consumer price index, is currently running at three per cent, a full one point above the government's target, and this has prompted the MPC to increase rates three times since August.
However, the Bank's senior economists appear to be adopting a 'wait and see' approach in anticipation of previous rate rises having the desired effect.
The National Association of Estate Agents chief executive, Peter Bolton King, welcomed this month's decision, saying he hoped this would be the "start of a period of stability regarding rates, which will be significant in maintaining a stable housing market".
David Bexon, of property website SmartNewHomes.com, concurred that the choice to hold rates would ease homeowners' mortgage repayment fears.
"A further rise at this time would have left many vulnerable groups struggling with repayments and could have caused wide spread stagnation across the housing market, with many homeowners either afraid to, or unable to move."
Halifax yesterday reported that the seasonally adjusted average house price in the UK is now £188,623.
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