Private landlords and other property professionals have seen the housing market slow down in recent months - but the Royal Institution of Chartered Surveyors (Rics) hopes that the Bank of England's asset purchasing scheme will help stimulate the sector.

Commenting after the latest interest rate decision by the Bank's monetary policy committee (MPC) to keep the base rate at 0.5 per cent, the organisation said increasing the asset purchasing initiative may start getting banks to lend and improve mortgage availability.

Rics' statement read: "That is one vital way to allow the recent increase in buyer enquiries to translate into an increase in sales and may help to lift the housing market out of its depressed state."

The Building Societies Association said the MPC's interest rate decision was not a surprise.

However, it remarked that the move "does nothing"to allow lenders the chance to attract new deposits, which could be used to fund mortgage lending.

Written by Mark Garner
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