The Bank of England narrowly voted to maintain interest rates at 5.25 per cent today (September 21).
The central bank’s monetary policy committee voted five to four in favour of maintaining the current rate.
Four members of the committee wanted to increase the rate by 0.25 percentage points to 5.5 per cent.
It comes a day after the Office for National Statistics announced that inflation would ease to 6.7 per cent.
The committee also voted to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves.
It said over the next year it will sell off a further £100bn of bonds, to a total of £658bn.
Nathan Emerson, CEO of Propertymark said the latest update is good news for those entering the housing market.
He said: "This now indicates that rises to interest rates have been impactful and that the fall in house prices has helped to even the affordability playing field and keep the wheels of the housing market turning.”
While Clare Beardmore, director of Legal & General Mortgage Club, said it would come as a relief for those who need to remortgage.
She said: “In the challenging economic environment we face today, it is all the more important that buyers and those supporting them seek advice. Advisers will be able to guide aspiring home buyers, and the Bank of Family, to ensure they are making the best decisions for their circumstances.”
tara.o'connor@ft.com
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