The Bank of England's recent decision to maintain the base rate of interest at 5.5 per cent has been described as very disappointing by a spokesperson for a residential property agency.

Marc Goldberg, head of residential sales, Hamptons International, is convinced that a reduction in the base rate would have benefited the property market in the UK, which he suggests suffered a "dramatic slowdown" in late 2007.

However, such a cut could be introduced by the bank in February, according to Mr Goldberg, who also claims that the housing market has been showing some signs of recovery in recent weeks.

"We are currently registering seven buyers for every new property coming onto the market and there is evidence of some buy to let investors returning and city bonus money being spent," he said.

A report from personal finance comparison firm Fool.co.uk recently suggested that falling house prices are encouraging more people in the UK to make their first property purchases.