The UK property industry breathed a collective sigh of relief this afternoon after the Bank of England announced it had opted against raising interest rates for the second time in three months.

The Monetary Policy Committee (MPC) delivered the decision which keeps the UK base rate at 5.25%, at midday.

Movements in the base rate mean more to mortgage-payers rather than commercial property investors but a rise in the base rate typically leads to a rise in the five and 10-year swap rates, the rate which determines the cost of debt raised by property investors.

It is though that the MPC was persuaded not to raise rates following last week’s extreme volatility in global stock markets, which wiped millions of pounds off the FTSE.

The City reacted warmly to the news but analysts say they are resigned to a series of hikes in the coming months as the bank continues its fight to curb inflation. Inflation fell from an 11-year high of 3% in January to 2.7% last month but the figure is still considerably in excess of the government’s 2% target.