The Bank of England kept rates on hold at 4.75% today. It is the fifth month in succession that the Banks MPC has frozen the cost of borrowing.

The committee chose not to raise the rate, as there are signs that the property market is beginning to cool, while there has been a slowdown in high street spending.

Estate agents and retailers however, were left disappointed, as they had been calling for rates to be cut.

John Butler, economist at HSBC, said: "At the moment there is a lot of uncertainty associated with the state of the housing market and consumer spending in general. Until we get more clarity from the Bank of England it is likely to keep rates on hold."

Five rate rises, since 2003, has added £851.10 a year to the annual cost of repaying a £100,000 typical 25-year interest repayment mortgage.