The Bank of England’s rate-setters have decided to keep interest rates as they are at their historic low of 0.5% for a sixth month as well as to pump a further £50bn into the economy.

In a statement, they said that the UK recession ‘appears to have been deeper than previously though… But the pace of contraction has moderated and business surveys suggest that the trough in output is close at hand,’ they added.

* More news on the property market and house prices 

James Hyman, Partner for Residential Sales at Property Consultants Cluttons, commented: ‘The considerable improvement in the market witnessed over the past months is a direct result of a lack of supply in Central London and an increase in demand. Buyers and sellers are now very carefully tracking the market and good prices are being achieved.

‘However, interest rates at this level have little bearing on the market where lending at any reasonable rate and loan to value is suspended. The market could quickly turn to a buyers market in the later in the year if unemployment rises again in the city, so anyone able and willing to move should take advantage of the current conditions.’

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