THE Bank of England’s Monetary Policy Committee has held the bank base rate at 3.5 per cent for the second month running.

This decision was no surprise to the market, which had been expecting this announcement based on recently-released market data being broadly positive over the last month.

The market is still, it appears, factoring in a rate rise before the end of the year.

With regard to house prices, according to the latest figures released by some of our high street lenders, prices continued to rise over the summer months with one lender stating that the average British house rose 1.1 per cent during August and now the average house costs £129,258, which is £1,000 more than in July.

So why have house prices continued to grow?

Well, house prices are being supported by a weak supply of new property coming on to the market.

And if we take into consideration current interest rates, which are at their lowest levels since the 1950s, together with the highest levels of employment on record, then the demand is such as to support higher prices.

Most experts are predicting that the market will slow down, but quite when is anybody’s guess.