The Bank of Englands MPC this week voted to keep interest rates on hold at 4.5%, following an announcement from the National Association of estate Agents (NAEA) that confidence within the housing market is improving.

Peter Bolton King, Chief Exec of the NAEA, commented: "It is still early days but a number of our agents have reported a rise in confidence following the August interest rate drop. With the rate cut occurring over the summer holiday period it will be difficult to accurately assess its affects until at least the end of this month. However, the initial findings look positive.

"We hope that the Bank of Englands decision to leave rates unchanged in September will help boost confidence further. Homeowners can be encouraged by this positive step towards stabilising the market. First time buyers, however, are still likely to struggle. We would welcome a further rate cut in the near future to help ease their situation."