The Bank of England chose to cut the base interest rate today 0.25% from its 16-year high of 5.25% to 5%.

Members of the Bank’s Monetary Policy Committee voted narrowly for a cut by five votes to four.

The property industry eagerly awaited the outcome, hoping that a cut would come and give the housing market an extra push as the summer holidays begin.

Major lenders such as Halifax, NatWest and Santander all cut their mortgage rates in anticipation of a possible rate cut today.

Many homeowners on fixed rates that are coming to an end soon were also hoping the Bank would give them a boost as they prepare to renegotiate their loans.

Inflation remained at 2% in May and June, which met the previous government’s target, and will have been considered when the Bank made its decision.

The last meeting of the MPC in June decided to keep the base rate at 5.25%, and the next announcement, after today, is on 19 September.

New Chancellor Rachel Reeves said she would support a cut in the base interest rate. Reeves, who became Chancellor after Labour’s victory in the General Election last month, said the Bank was “rightly independent”, but should consider a rate cut.

Via @TheNegotiator