The Bank of England has raised interest rates by a quarter of one percentage point to 4.50%.

The UK central bank’s monetary policy committee (MPC) voted to increase the base rate for the 12th consecutive time.

It takes borrowing costs to the highest level since October 2008.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “This latest increase in rates comes as no surprise and for that reason, the impact on the housing market is likely to be relatively modest.

“Activity has certainly improved since the beginning of the year although buyers remain cautious about taking on debt.

“Nevertheless, there are many buyers who sense there is an opportunity to take advantage of stabilising, and even softening in some cases, prices.

“Most buyers are telling us they need to see value if they are going to commit and we have noticed many more viewings before offers are forthcoming for those reasons. Realistic sellers are recognising that the differential between selling and buying is what they should be concentrating on, rather than headline prices.“