Interest rates held at 0.5%

The Bank of England has held interest rates at the 0.5% record low for the 13th consecutive month.

The Bank's Monetary Policy Committee also left the Quantitative Easing programme unchanged at £200 billion. But it left the door open to extend the amount if the economic recovery which got underway in the final quarter of 2009 loses steam in early 2010.

Jennet Siebrits, head of residential research at CB Richard Ellis said: “Creating a robust economic environment will be an important element of each political party’s election campaign and the MPC will be under pressure to keep the recovery on track while balancing the needs of consumers and businesses.”

James Thomas, head of residential development and investment at Jones Lang LaSalle, added that the concern of a rising interest rate later in the year would continue to weight on the commercial sector.

He said: “Markets generally offer a wide range of choice to occupiers through to the end of 2010, before severe pipeline constraints occur. However, the window of opportunity, particularly for occupiers seeking good quality space or larger floor plates, will begin to close very soon as a diminished supply pipeline starts to effect a hardening of market conditions."