The quarter of a percentage point increase has hiked rates to their highest level for five years.

The Bank of England's Monetary Policy Committee (MPC) acted because of concerns over inflationary pressures.

Milan Khatri, of the Royal Institution of Chartered Surveyors (RICS), told the BBC:

"By acting in a timely manner, the modest rise in interest rates will help to cool the housing market but at the same time promote wider economic stability and prevent inflation pressures building."