After last month's rise the Bank of England today voted to keep interest rates at 5.25%.

Housebuilders were given a reprieve today after the Bank of England voted to keep interest rates at 5.25%.

Last month the Bank’s Monetary Policy committee surprised analysts when it increased rates a quarter point in order to curb inflation.

Bank of England

Experts expected interest rates to stay the same this month though there are fears of another rise before the summer.

The news has been welcomed by the property sector. Stuart Law, chief executive of Assetz, a property investment companies said: “I am glad to see the Bank of England recognises that the risks to inflation are under control. Inflation will lower significantly towards the end of the year back towards 2% and wage demands also appear to be under control.

“I do not believe further interest rate rises are justified and in fact I would expect rates to reverse back to 5% in due course. Property price inflation is still being driven by excess demand over supply which is likely to continue for many years to come, leading to continued moderate levels of house price growth.”