The Bank of England’s Monetary Policy Committee has kept interest rates at 5%.

The decision against a further fall in interest rates - there have been three cuts since the turn of the year - was widely anticipated amid concerns about the pace of inflation.

Inflation has grown to 3% as a result of rising food and fuel prices. The government’s target is 2%.

The decision against further slashing interest rates was met with little enthusiasm in the property market.

Keith Steventon, head of research at Atisreal, said: ‘We'll have to continue struggling on, I suppose.’

‘The investment market is unnaturally quiet and this will confirm investors in their intention to wait until the new year before entering the market.’

‘It won't help the occupier market either. We've seen business confidence evaporate and this lack of action by the Bank will only make that worse.’