Base rate is kept level for eighth month in a row as bank plans to extend quantitative easing by £25bn

The Bank of England as kept base rates at 0.5% for the eighth month in a row.

Its quantitative easing programme will also be extended by £25bn to £200bn following the economy's third-quarter contraction of 0.4%.

James Thomas, head of residential development and investment at Jones Lang LaSalle, said he expected the recent upswing in house prices to continue.

“House prices have now increased to levels higher than a year ago for the first time in 19 months. Nationwide reported that house prices in October were 2% higher than the same month last year, with house prices now averaging at £162,038,” he said.

“More positively, according to the Bank of England, mortgage approvals rose to the highest level since March 2008, rising by 3,000 in September to 56,000. Although this is still much lower than the monthly average level of 95,000 recorded between 1993 and 2008, the increase is a positive sign which supports the recovery in the housing market.”