The Bank of England's Monetary Policy Committee (MPC) has once again voted to hold interest rates at 4.5%.
This is the 11th consecutive month the MPC has kept rates on hold after it lowered the base rate from 4.75% in August 2005.
It also follows this morning’s release of mortgage equity withdrawal figures from the Bank for the first quarter of 2006.
According to the statistics mortgage equity withdrawal stood at £12.5bn, £0.4bn higher than the revised estimate of £12.1bn for the final quarter of 2005
Meanwhile the Nationwide quarterly review of house price growth, also released this morning, shows England lagging behind in house price growth while Scotland and Northern Ireland are showing rapid increases.
The lender says the average London house price now exceeds £250,000 and house price growth in the South is still accelerating. But this has been offset by a slowdown in the North.
The report claims a lack of supply could mean up to 200,000 frustrated households in UK with housing stock in short supply in the South East, as well as in East Anglia and the Midlands.
Fionnuala Earley, Nationwide’s group economist, says while the annual rate of house price growth in the UK remained stable in the second quarter of this year, the quarterly growth rate fell back sharply from 2.2% to 0.9%.
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