The Bank of England has maintained interest rates at 5.75%.

David Bexon, managing director of SmartNewHomes.com, said: “Today’s decision to hold interest rates will not be well received by current home owners, some of whom are yet to be hit with higher payments as fixed rate deals end. This month, interest rates should have been reduced to restore confidence throughout the market as whole.

“With a fall in the number of new mortgages taken out last month it is clear that new buyers are being put off by the current uncertainty. I urge the MPC to bring better news next month and vote for a cut.”

Warren Bright, chief executive of propertyfinder.com, said: “It is high time that base rate cuts came onto the Monetary Policy Committee’s agenda. Turmoil in international credit markets has effectively been a rate hike by another name. House price growth has been moderating for some time and confidence in the housing market has been dented. The MPC should now be cutting rates to prevent the housing market’s orderly slowdown becoming a disorderly rout.”